NewEnergyNews: TODAY’S STUDY: The Fight For Transportation Electrification Right Now

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    Monday, March 04, 2019

    TODAY’S STUDY: The Fight For Transportation Electrification Right Now

    The 50 States of Electric Vehicles: 2018 Review and Q4 2018

    February 14, 2019 (North Carolina Clean Energy Technology Center)

    Executive Summary

    2018 ELECTRIC VEHICLE ACTION

    In 2018, 47 states plus DC took a total of 424 policy and deployment actions related to electric vehicles and charging infrastructure. Table 1 provides a summary of state and utility actions on these topics. Of the 424 actions cataloged, the most common were related to regulation (102), followed by financial incentives (89), and market development (78).

    TOP TEN MOST ACTIVE STATES OF 2018

    Ten states taking the greatest number of actions related to electric vehicles, or some of the most impactful actions, are noted below.

    California

    The California Public Utilities Commission approved major transportation electrification plans from the state’s investor-owned utilities and considered proposals for additional utility investments in charging infrastructure, as well as new rebate programs and rate offerings. The California State Legislature enacted several bills related to electric vehicles, initiating studies, modifying incentives, and establishing a clean miles standard for ridesharing companies.

    New Jersey

    Atlantic City Electric and PSE&G New Jersey proposed new electric vehicle programs in 2018, totaling $14.9 million and $261 million in investment, respectively. The programs include charging infrastructure deployment, rebate programs, and a new rate option. The state is also addressing clean transportation within its Energy Master Plan, and the Governor signed onto the multi-state memorandum of understanding to support zero-emission vehicles.

    New York

    New York regulators considered several electric vehicle rate design proposals in 2018, including rates to encourage fast charging development, as well as rebate programs proposed by utilities. The Governor also announced the $250 million EVolve NY Initiative to expand charging infrastructure in the state. State lawmakers considered a large number of bills related to electric vehicles, although none of these were enacted.

    Massachusetts

    Massachusetts regulators approved National Grid’s Phase I Electric Vehicle Market Development Program in 2018, and the utility also filed for approval of its Phase II program, totaling $166.5 million in investment. Regulators also determined that electric vehicle charging service is not within the Department of Public Utilities’ jurisdiction, while lawmakers enacted a bill prohibiting homeowner associations from preventing charging station installation.

    Maryland

    The Maryland Public Service Commission considered an expansive electric vehicle program proposal arising out of the state’s PC 44 grid modernization proceeding. The program covers the state’s four investor-owned utilities and includes rate designs, a variety of incentives, grants for innovative ideas, and technology demonstration projects. The Maryland General Assembly also enacted legislation extending the expiration date for electric vehicle access to highoccupancy vehicle lanes.

    District of Columbia

    Pepco filed a revised electric transportation program proposal in 2018, totaling $15.2 million in investment. The proposed program includes off-peak charging rates, incentives for charging infrastructure, and direct deployment of fast charging infrastructure. The DC City Council also enacted the Electric Vehicle Public Infrastructure Expansion Act, creating a new charging station pilot program.

    Nevada

    The Public Utilities Commission of Nevada approved NV Energy’s Electric Vehicle Infrastructure Demonstration Program in 2018, which includes rebates for various types of charging equipment, as well as incentives for off-peak charging. The Commission also determined that NV Energy may own and operate charging stations and considered a transitional demand charge proposed by NV Energy for customers with fast charging stations.

    Minnesota

    Minnesota regulators considered electric vehicle charging and infrastructure through an investigatory proceeding in 2018. Xcel Energy proposed two new electric vehicle pilot programs aimed at fleets and public charging, while the Commission approved a new residential electric vehicle service pilot for the utility. Minnesota Power also requested approval for modifications to its electric vehicle charging tariff.

    Missouri

    Kansas City Power and Light (KCP&L) requested approval for cost recovery and a tariff for its utility-owned charging network in 2018, although the Public Service Commission had previously ruled that charging stations are not electric plants and eligible for cost recovery. The Missouri Court of Appeals overturned this decision in 2018, determining that the Commission does have jurisdiction over KCP&L’s charging stations. The Commission also considered an incentive program proposed by Ameren.

    Pennsylvania

    The Pennsylvania Public Utility Commission adopted a policy statement in 2018, clarifying that third-party electric vehicle charging does not constitute a resale of electricity. Duquesne Light Company, PECO, and UGI Utilities proposed new electric vehicle programs in 2018, including charging infrastructure investments, a rebate program, and a pilot rate rider for fast charging stations.

    TOP ELECTRIC VEHICLE TRENDS OF 2018

    States Clarifying Commission Jurisdiction Over Electric Vehicle Charging Stations

    Policymakers and regulators in several states, including Alabama, Missouri, New Hampshire, Pennsylvania, and Vermont considered whether utility regulators have jurisdiction over electric vehicle charging stations. Alabama and New Hampshire clarified that electric vehicle charging station operators are not classified as public utilities, and Pennsylvania regulators adopted a policy statement that third-party charging does not constitute a resale of electricity.

    Utilities Proposing Demand Charge Reductions or Alternatives for Fast Chargers

    Several utilities proposed limited-time demand charge reductions or alternative charges for DC fast charging station operators in order to promote the development of these stations, since demand charges can often make fast charging stations cost-prohibitive. Demand charge reductions were approved in Nevada, Oregon, Pennsylvania, and Rhode Island, while utility proposals are under consideration in California, Massachusetts, and New York.

    Governors Establishing Statewide Zero-Emission Vehicle Goals

    Governors in several states established statewide goals related to electric vehicle adoption and charging infrastructure development in 2018. In North Carolina, Executive Order 80 sets a goal of 80,000 registered zero-emission vehicles by 2025, and California’s Executive Order B-48-18 establishes a goal of 5 million zero-emission vehicles by 2030. Governors in Colorado, New Jersey, and Virginia also set goals or made recommendations related to electric vehicles and charging infrastructure development

    States Addressing the Future of Transportation Infrastructure Funding

    Many states are addressing the future of transportation infrastructure funding, due to increased electric vehicle adoption and an associated decline in gasoline tax revenues, among other reasons. The Iowa Department of Transportation conducted a study of the impact of electric vehicles on transportation funding, while the Vermont Public Utility Commission considered funding mechanisms within its ongoing electric vehicle investigation. Many states considered bills establishing additional registration fees for electric vehicles in 2018

    Utilities Collecting Data on Electric Vehicle Charging Patterns

    As a part of many utilities’ electric vehicle programs, they are collecting data on customer charging patterns to inform future programs and rates, as well as to better understand the potential impact of electric vehicle charging on the electric grid. Duke Energy Florida, Lincoln Electric System in Nebraska, and the Tennessee Valley Authority all announced studies specifically collecting data on customer charging and offering incentives for participation.

    Utilities Focusing on Different Methods to Promote Off-Peak Charging

    Most of the utility-led electric vehicle programs under consideration in 2018 included some method to promote off-peak charging. Several utilities proposed deployment of or rebates for smart chargers, including DTE Electric in Michigan and National Grid in Massachusetts. Other utilities proposed rebates for off-peak vehicle charging or rate structures that encourage offpeak charging.

    Utilities and Stakeholders Finding Agreement on Electric Vehicle Programs

    Utilities and stakeholders are often agreeing on electric vehicle program proposals and policy issues. Many stakeholders filed letters of support for Duke Energy’s proposed electric vehicle plans in South Carolina, and parties reached unanimous agreement on NV Energy’s new rate offering for fast charging stations. Utilities and stakeholders were also in agreement on the issue of Commission jurisdiction over charging stations in Alabama.

    State Agencies Publishing Spending Plans for Volkswagen Settlement Funds

    States agencies published their Beneficiary Mitigation Plans in 2018, outlining plans to spend funding received through the 2016 Volkswagen Settlement, paying out $2.7 billion to states for environmental mitigation. States are permitted to allocate up to 15% of funds for charging infrastructure for zero-emission vehicles, and several states are also allocating funds for electric buses. Several state legislatures are considering funding priorities or providing additional resources to complement Mitigation Plan activities.

    States and Utilities Investing in Electric Buses and Charging Infrastructure Investment in electric buses and charging infrastructure ramped up in 2018, with several utilities including electric bus components *within their transportation electrification programs. Pepco in DC, Delmarva Power & Light in Delaware, and National Grid in Massachusetts all proposed electric bus investments as part of broader electric vehicle programs. Arizona Public Service also proposed an electric school bus program as part of its Demand-Side Management Plan.

    Utilities Piloting Vehicle-to-Grid Capabilities

    Some utilities took steps to pilot vehicle-to-grid capabilities in 2018. PSE&G New Jersey proposed a program to test vehicle-to-grid and vehicle-to-building technology with electric buses. Duke Energy’s proposed electric vehicle programs in South Carolina and a pilot proposed as part of San Diego Gas & Electric’s Transportation Electrification Program would also test vehicle-to-grid capabilities with electric buses.

    IN COMPARISON: 2017 VS. 2018

    Total electric vehicle action increased by 87% over the past year, with states and utilities taking approximately 227 actions in 2017 and 424 actions in 2018. In 2018, activity increased in every category tracked by this report by the following amounts: Studies & Investigations: 96%, Regulation: 46%, Rate Design: 194%, Market Development: 117%, Incentives: 68%, and Deployment: 117%. The number of states taking actions in each electric vehicle category also increased from 2017 to 2018.

    Q4 2018 ELECTRIC VEHICLE ACTION…TOP ELECTRIC VEHICLE ACTIONS OF Q4 2018…

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