Washington state commits to supporting a growing EV market

The power and transportation sectors are the top two sources of greenhouse gas emissions in the United States. So for a state like Washington that already relies on low-emission power, transportation is the key opportunity to reduce emissions.

That’s why two concrete steps by the state to support its growing electric vehicle (EV) market in the near term are significant. As part of a transportation package signed by Governor Inslee on July 15, Senate Bill 5987 will:

1. Extend the state’s EV sales tax exemption to 2019, opening up it up to plug-in hybrids that can travel at least 30 miles on electricity while capping eligibility to cars that cost under $35,000.

2. Create a unique EV infrastructure bank to fund innovative charging station projects.

Although both steps were less than the broader climate action the governor sought, it’s notable that the state has given a clear market signal that it wants more EVs on its roads, and that it is encouraging public-private partnerships to fund EV charging infrastructure.

These actions are grounded in broader research C2ES completed this spring for the Washington State Legislature’s Joint Transportation Committee. The study analyzed a variety of roles that the public sector can play to help expand private investment in EV charging infrastructure.

With demand for public charging still low and charging infrastructure costs high, it’s critical to capture the indirect revenue streams associated with charging services.

Public push can spur private investment in EV charging

This map shows that large segments of many major roadways in Washington state do not have any publicly available DC fast charging. Our report demonstrates how the private sector can be the predominant source of funding for publicly available commercial charging stations within approximately five years.

For electric vehicles (EVs) to hit the mainstream and make a meaningful contribution to reducing greenhouse gas emissions, they’ll need a robust public charging infrastructure that lets drivers go where they take gasoline-powered cars now. Our recent work for Washington state identified some promising ways to get the private sector to fund more of that infrastructure in the near term, and fund all of it eventually.

The C2ES study was commissioned by the Washington State Legislature’s Joint Transportation Committee and guided by an advisory panel of state legislators,  EV experts, and other stakeholders. The findings, which could be implemented in the state through a bipartisan House bill, demonstrate that, with continued public support and accelerated EV market growth in the near term, the private sector could predominantly fund commercial charging stations in about five years.

A frequent question about funding infrastructure for EVs is, “Why not just follow the gas station model?” Under that model, an investor would pay to install and operate equipment and make a profit by selling the electricity to charge an EV.

Putting aside the fact that gas stations make most of their money at the convenience store or repair shop and not at the pump, this business model doesn’t work for EV charging for three reasons. First, the cost of owning and installing EV charging equipment is high. Second, the market for EVs is small in most places and the demand for charging is uncertain. And third, EV drivers are not willing to pay a high price

Low gas prices tempt consumers to buy gas guzzlers, but they should resist

In the past six months, the price of gasoline in the United States has declined precipitously - from its June peak of $3.63 per gallon to less than $2 in some parts of the country now.

The effect this sharp price decline will ultimately have on greenhouse gas emissions is not yet known, but a reasonable estimate is that emissions will rise as less efficient cars and trucks become popular for the first time in years. Luckily for the climate, stronger federal fuel economy standards will mean that emissions from the transportation sector won’t rise nearly as much as they would have.

Using travel data from the U.S. Energy Information Administration (EIA), monthly vehicle sales data, and fuel economy calculations by Michael Sivak and Brandon Schoetle of the University of Michigan, we calculate that vehicles purchased in last five months will emit 7.8 million more metric tons of greenhouse gases than if car-buying habits before the gas price drop had continued. An average car emits about 43 metric tons of greenhouse gases over its useful life, so the additional emissions are about the same as putting 180,000 new cars and light trucks on the road.

The sudden plunge in gas prices can make it tempting to forget the lessons of the past.

Public policy, private investment needed to keep EV market growing in 2015

Sales of electric vehicles (EVs) were up 25 percent last year, and automakers are looking to boost sales further in 2015 with new and updated models. Clearly, EVs have moved beyond their infancy. But continued growth in the EV market will require smart public and private strategies to expand charging infrastructure so motorists don’t have to worry about running out of juice.

Advancing the deployment of low-carbon vehicle technology, like EVs, is essential if we’re going to achieve meaningful emissions reductions from the transportation sector, which is responsible for 28 percent of U.S. greenhouse gases. Globally, the problem is more acute as the number of light-duty vehicles on the road is expected to double to more than 2 billion by 2050.

Automakers will begin introducing their second generation EVs beginning this month with the 2016 Chevy Volt. While sales will likely jump because of the incremental improvements from the first generation Volt, more time is likely needed for batteries to improve and charging infrastructure to be deployed.

Our work for the Washington State Legislature shows that new business models to foster private investment in charging infrastructure will be vital, but public sector policies and incentives will still be needed in the near term to keep the market growing.

Firsthand lessons on public charging for EVs

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My ride for the weekend: BMW’s first mass-produced all-electric vehicle.

Washington, D.C., is well-situated for day trips with mountains, forests, beach and bay all a short drive away. On a recent weekend, I was lucky enough to tool around in style. BMW lent me their new electric car – the i3 – and asked that I race it around the DC metro region. (Or perhaps that’s just how I heard them.)

The car handles beautifully the way you’d expect a BMW to, and proves there’s no performance tradeoff by going with an electric vehicle (EV). For most drivers, EVs like the i3 can accommodate daily driving needs. The average American only travels 30 miles per day. In particular, EVs are well suited for commuting because a driver can charge at home or the workplace. But day-tripping with an EV can take more planning and I learned firsthand that a robust public charging network is essential if EVs are to make more headway in the marketplace.

At C2ES, we often cite the importance of public charging stations to extend the range of EVs and give drivers confidence that an EV is a practical replacement for their conventional car. To allow EV drivers to travel as they would with a gasoline car, quick charging stations are needed along major roadways. Multiple, slower charging stations (referred to as Level 2) should be at key destinations to provide redundancy in case stations are in use or down for maintenance. Those are some of the conclusions of our new paper assessing the public charging infrastructure in Washington state and the same can be said of Washington, D.C.