Electric Vehicles

Action on VW settlement heating up as summer approaches

Summer is around the corner, bringing barbeques, warm weather, and road trips. U.S. residents may benefit from Volkswagen (VW) funding for those last two items (and Nissan bravely experimented with the barbeque): reducing air pollutants that cause harmful health effects in warm weather through a Mitigation Trust, and extending electric vehicles’ (EVs) driving range through a series of charging infrastructure investments. Both programs are set to take effect shortly, and cities and businesses may benefit from early action.

As a quick reminder, VW is putting $4.7 billion in two separate funds for mitigating nitrogen oxides (NOx) emissions and investing in zero-emission vehicles as part of a settlement for installing devices designed to bypass U.S. auto emissions tests. (The two funds are shown below and described in greater detail in this blog post.)

Mitigation Trust to Reduce NOx emissions from heavy-duty vehicles

The Mitigation Trust will allocate funding to each state to spend on reducing the NOx emissions that were created by the altered VW vehicles. The funding will be disbursed within the state by one lead agency that must be approved by an appointed trustee. The trustee, investment firm Wilmington Trust, was selected in March. Once all parties confirm Wilmington Trust, which could happen any day, the Trust Effective Date will be established. The Trust Effective Date is essentially the “starter’s pistol” that will set the process of distributing Mitigation Trust funds to states in motion. The general timeline for applying for and receiving funds is shown below, though several deadlines are flexible and may proceed more quickly than the maximum amount of time allocated.

 

Cities and businesses should contact and work actively with the lead agencies in their states to identify and promote opportunities to replace older diesel engines and vehicles. Several states have already identified their lead agencies or principal contacts and are beginning to design plans for how the available funding will be spent. Though funding can be spent over 15 years, as much as two-thirds can be spent within the first two years. Therefore, it is in the best interest of cities or businesses to engage with state agencies early.

ZEV Investment to Expand public EV charging

VW’s initial ZEV Investment is also ready to be put into action through a $200 million California Investment Plan and a $300 million National Investment Plan that covers all other states. VW submitted separate investment plans that cover the next 30 months earlier this year to the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). The EPA approved the National Investment Plan, which allocates $40 million to lower-powered community charging in 11 major cities and $190 million to higher-powered fast charging along selected highways across the nation. Community charging will be focused in New York City, Washington, DC, Chicago, Portland (OR), Boston, Seattle, Philadelphia, Denver, Houston, Miami, and Raleigh. Estimated highway charging installations are displayed in Table 3 of the National Investment Plan (page 22).

Though the cities and corridors have been chosen, the sites and vendors have not. The process of selecting sites and vendors for the bulk of charging stations is scheduled for the second and third quarters of 2017. Cities identified for investments in community charging or nearby corridor charging can work with VW’s subsidiary, Electrify America, to identify optimal locations that may promote retail growth or adoption by low-income communities in multi-unit dwellings by hosting charging stations. Businesses may also benefit from increased traffic to use public charging stations (as C2ES has covered in a report on EV charging station business models) or from the opportunity to work with Electrify America to install charging stations.

CARB has not yet approved the California Investment Plan out of concerns for social equity and EV charging market competitiveness, sending a letter to Electrify America requesting that a supplemental plan reflect greater investments in low-income communities. Once CARB approves a plan, California cities and businesses should also consider opportunities to work with Electrify America to optimally site charging stations during the first 30-month round of investments. During the next round of investments, slated to begin in late 2019, proposals to Electrify America may be more successful if they incorporate CARB’s concerns and demonstrate air-quality benefits to low-income communities or a need to fill regional EV charging gaps.

With action on both VW settlements’ funding programs taking shape, cities and businesses should be prepared to identify opportunities to reduce NOx emissions and promote EV adoption .

 

Bob Perciasepe's statement on fuel economy standards review

Statement of Bob Perciasepe
President, Center for Climate and Energy Solutions (C2ES)

March 15, 2017

On the administration’s re-evaluation of the fuel economy standards for model years 2022-2025:

Federal fuel economy standards are improving air quality, reducing U.S. reliance on oil imports, and saving drivers money.

Working together, industry and the government crafted a roadmap for fuel economy standards through 2025. Automakers have been meeting the standards, with stronger and lighter materials, hybrid-electric drivetrains, alternative fuels, and other technological innovations. These innovations have occurred at the same time automobile sales in the U.S. have reached record highs and employment is increasing in high technology vehicles. As other nations seek greater fuel efficiency, U.S. automakers should not risk losing their growing competitive global advantage.

Moving to re-evaluate standards for model years 2022-2025 should demonstrate that the technological innovation achieved by the auto industry can continue to advance, providing ample basis for strong standards.

It would be a mistake to use the re-evaluation to remove incentives for advancing innovation. It would also be a mistake to inhibit state and local innovation.

States should continue to lead if they desire to, and we should not harm states’ rights to choose cleaner air and innovative vehicle markets.

The administration should also look to partner with local and state governments to improve transportation systems, helping us reduce the miles we all drive every day. With local action and federal action combined, a more comprehensive approach can continue to reduce emissions, reduce oil imports and save money for every driver.

--

About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonpartisan, nonprofit organization working to forge practical solutions to climate change. Our mission is to advance strong policy and action to reduce greenhouse gas emissions, promote clean energy, and strengthen resilience to climate impacts. Learn more at www.c2es.org.

Year Ahead: We must strengthen climate action wherever possible

When I wrote a blog a year ago taking stock of the strengthening climate change effort, I reflected on a year of unprecedented progress, capped by the Paris Agreement, and outlined ways we could build on those successes.

At the beginning of the new U.S. administration, the outlook is unfortunately far different.  Now, our challenge is to preserve as much of this progress as we can, and to devise new strategies to continue strengthening climate action wherever possible.

Despite coming setbacks, it’s worth reminding ourselves that we have a solid base to work from. Thanks in part to strong policies, but also to growing market forces, the U.S. is on the path to a clean-energy transition, and the continued momentum is strong.

A few examples, just since the election:

·      Some of the world’s wealthiest entrepreneurs, including Bill Gates, Richard Branson, and Mark Zuckerberg, launched a billion-dollar fund to invest in cutting-edge clean energy technologies.

The new policy landscape won’t be clear for some time and is likely to evolve. But as we monitor the early signs, and take soundings with policymakers and stakeholders around the country and around the world, we are coming to a clearer view of immediate imperatives, and of opportunities that may lie ahead.

One imperative is ensuring that the United States remains a reliable partner in the global climate effort – by staying in the Paris Agreement, and by working constructively with other countries to establish sound rules for its implementation. 

We were encouraged to hear Secretary of State nominee Rex Tillerson note the importance of the United States staying at the table. Indeed, the Paris Agreement reflects long-standing bipartisan principles. It fully preserves national sovereignty while providing a means of holding other countries accountable. U.S. businesses benefit from full access to the clean energy markets the agreement helps drive.

We were encouraged also to hear EPA Administrator nominee Scott Pruitt express respect for the “endangerment finding” underpinning the regulation of greenhouse gases under the Clean Air Act. What is critical is how EPA chooses to fulfill the inherent legal obligation to regulate emissions, starting with the power sector.

While the Clean Power Plan appears unlikely to survive, decarbonization of the power sector is already underway. Thanks to improved energy efficiency and a more diverse energy mix, emissions dropped more than 20 percent over the last decade. Last year was the third in a row that renewables accounted for more than half of new U.S. power capacity.

Continued tax credits enjoying strong bipartisan support will help sustain that growth.  State-level conversations on lower carbon energy policies are continuing as states, cities and utilities find economic opportunity in modernizing the power sector. But the imperative remains: We need an overarching federal framework to deliver sustained, cost-effective emission reductions. We urge the new administration and Congress to get on with the job.

In the near term, we see opportunities for bipartisan steps that benefit both the climate and the economy and strengthen the foundation for a longer-term clean energy transition. These include:

Incentivizing carbon capture, use and storage.

Carbon capture technologies like those deployed this month in Texas are essential to meeting the climate challenge. Senate Majority Leader Mitch McConnell was among the bipartisan sponsors of a bill last year to help advance these technologies by supporting the use of captured CO2 in enhanced oil recovery, as recommended by a coalition of industry, labor, and environmental groups we help lead. We expect similar legislation in this Congress.

Advancing nuclear energy.

Bipartisan bills have already been introduced in the House and Senate to spur advanced nuclear technologies. Nuclear is our largest source of zero-carbon energy and the only one that provides continuous baseload power. It will have to play a significant role in any realistic long-term climate strategy.

Modernizing our infrastructure.

A viable infrastructure package could open significant opportunities to address climate change while creating jobs and growth. Examples include:

  • A modernized electric grid that can better distribute renewable power and is more climate-resilient.
  • Expanded charging and refueling networks for electric, natural gas and hydrogen vehicles.
  • Roads and bridges that can better withstand more frequent extreme weather.

One reason we’re confident of continued momentum is that the vast majority of the American people support it. In a Yale survey conducted after the election, nearly 70 percent favored staying in the Paris Agreement. And 70 percent – including a majority of Republicans – supported strict carbon limits on existing coal plants.

Business leaders, too, recognize the growing risks of climate impacts, and the opportunities to create new products, services and jobs.

And a growing number of cities are finding they can save money and create jobs by encouraging energy efficiency and clean energy and transportation.

At C2ES, while we are bracing for setbacks, and are prepared to defend against reversing course, we also will continue working as hard as ever to bring diverse interests together to make progress wherever we can. We face significant new challenges. But from the local to the global level, we’ve got strong momentum. And we can’t turn back.

 

C2ES again ranks among top environmental think tanks

Press Release
January 26, 2017
Contact Laura Rehrmann, rehrmannl@c2es.org

C2ES again ranks among top environmental think tanks

WASHINGTON -- The Center for Climate and Energy Solutions (C2ES) is honored to be recognized once again as one of the world’s leading environmental think tanks.

C2ES ranked fourth among environment policy think tanks in the University of Pennsylvania’s 2016 Global Go To Think Tank Index, based on a worldwide survey of more than 2,500 scholars, academics, public and private donors, policymakers, and journalists.

C2ES was also recently named the top U.S. energy and environment think tank by Prospect magazine for helping lay the groundwork for the Paris Agreement.

“C2ES’s consistently high ranking is a tribute to our unique ability to bring together diverse stakeholders to achieve practical, commonsense solutions,” said C2ES President Bob Perciasepe. “We work with companies, cities, states, and national governments to develop and implement economically sound, innovative policies to reduce greenhouse gas emissions, promote clean energy, and strengthen resilience to climate impacts.”

“I congratulate and thank our outstanding staffers, supporters, partners, and board members, including Board Chairman Ted Roosevelt IV, who have helped C2ES achieve and maintain our success,” Perciasepe said.

This is the 10th year for the University of Pennsylvania’s Think Tanks and Civil Societies Program to rank the world’s 6,846 leading think tanks. According to the report, the top environmental think tanks “excel in research, analysis and public engagement on a wide range of policy issues with the aim of advancing debate, facilitating cooperation between relevant actors, maintaining public support and funding, and improving the overall quality of life.”

--

About C2ES: The Center for Climate and Energy Solutions (C2ES) is an independent, nonpartisan, nonprofit organization working to forge practical solutions to climate change. Our mission is to advance strong policy and action to reduce greenhouse gas emissions, promote clean energy, and strengthen resilience to climate impacts. Learn more at www.c2es.org.

Volkswagen Settlement Funding: What Cities Should Know

Volkswagen Settlement Funding: What Cities Should Know

December 2016

Download the fact sheet (PDF)

In October 2016, the U.S. government granted final approval of a $14.7 billion settlement against Volkswagen (VW) for equipping more than 500,000 of its diesel vehicles to cheat U.S. vehicle emissions tests in violation of the Clean Air Act. Volkswagen will spend $10 billion on vehicle buybacks and $4.7 billion to mitigate the pollution from these cars and invest in green vehicle technology. This latter amount will be split between two investment programs that states, cities, and tribes can use to expand alternative vehicle projects and access to zero emission vehicles (ZEVs). Cities can play a key role, starting now, by identifying local emissions-cutting and zero-emission vehicle deployment projects that could benefit from increased investment and proposing ideas to states and Volkswagen about ways these funds can best be leveraged.

Since October 25, 2016, when the $14.7 billion settlement for claims related to emissions testing “defeat devices” installed in 2.0 liter diesel-powered vehicles was finalized, Volkswagen (VW) has resolved additional legal challenges with the U.S. Department of Justice. On December 20, 2016, a settlement for claims related to emissions testing “defeat devices” installed in 3.0 liter diesel-powered vehicles was announced, setting aside $1 billion for vehicle buy-backs and fixes and $250 million dedicated toward nitrogen oxide mitigation and zero emission vehicle investments. On January 11, 2017, VW agreed to plead guilty to criminal felony counts and a pay $2.8 billion criminal penalty.  VW also agreed to settle civil environmental, customs, and financial claims by paying $1.5 billion to the U.S. Environmental Protection Agency and U.S. Customs & Border Patrol.

0

PEV Market Trends, SMART Charging and Renewables Webinar

Promoted in Energy Efficiency section: 
0
1:00 p.m. - 2:00 p.m., ETRegister here

PEV Market Trends, SMART Charging and Renewables Webinar

Presented by Dan Welch, Solutions Fellow, Center for Climate and Energy Solutions (C2ES)

Aug. 25, 2016
1-2 p.m., ET

The goal of the webinar is to share a market update on PEVs, and to focus on policies and technologies that drive PEV deployment, particularly with a focus on Smart Charging and renewable energy use. Dan Welch, Center for Climate and Energy Solutions and Dr. Dan Santini, Argonne National Laboratory, will discuss current research on these topics and the potential impact for future PEV market development.

Registration is required. To attend, register for the webinar with GoToWebinar.

Positive steps on the road to more EV charging

Last year, I spoke to a Slate reporter who asked why the Obama Administration had not invested more in electric vehicle (EV) charging infrastructure. Last night, the administration took steps to reduce transportation emissions by making charging easier and more affordable and by leading the way through a unified, national effort.

The administration announced several initiatives to promote EV adoption. Notably, $4.5 billion in funding has been designated to support guaranteed loans for the installation of new EV charging stations. The administration also plans to develop a guide for federal funding, financial, and technical assistance for EVs and EV charging infrastructure, as well as invest in research and partnerships that will expand EVs’ consumer appeal.

More funding

Range anxiety, or a simple lack of available charging options, continues to impede the growth of the EV market. The administration announced $4.5 billion in guaranteed loans through the U.S. Department of Energy’s (DOE) Loan Program Office to install EV charging stations. Expanding federal loans to include EV charging stations may help remove a major impediment to investing public charging by reducing the cost of capital.

A 2015 C2ES report recommended government loans in the short term to help stimulate the growth of public charging infrastructure and create a sustainable charging network. The report found that charging service providers face difficulties earning a return on investments for public charging projects, but could develop profitable business models with government financial support.

Federal standards

The administration is proposing to develop federal standards to assist with developing networks of DC fast charging stations, which can charge an EV in 30 minutes or less. The U.S. Departments of Energy and Transportation will produce a guide to federal funding programs, financing incentives, and technical assistance for EVs and charging stations. The intervention of the federal government may help create some more consistency between charging networks with varying standards and processes, and the guide may establish an authoritative and inclusive resource for all stakeholders to turn to for a better understanding of EVs.

The proposal leverages existing programs, such as the congressionally approved 2015 FAST Act designating travel corridors for alternative fueling stations, to help expand DC fast charging networks.

This figure illustrates the business challenge facing charging service providers.

This figure illustrates the business challenge facing charging service providers. Over the expected life of the charging equipment, the direct revenue for the provision of charging services is less than the cost of owning and operating the charging station.

Consumer appeal

The White House’s announcement also includes new funding for research to cut EV charging time down to 10 minutes, which would appeal to consumers used to fueling gasoline-powered cars. Consumers may find charging easier with the inclusion of new companies in DOE’s workplace charging program and utility commitments to deploying new EV infrastructure.

There may be some criticism about why the federal government is investing this funding in EVs, and not other clean transportation technologies such as natural gas or hydrogen. EVs currently hit the sweet spot of offering greater carbon reduction potential than natural gas vehicles, with the capacity to get even cleaner as the electric grid decarbonizes, while attracting greater support from automakers and consumers than hydrogen fuel cell vehicles. Twenty-six EV models were sold in the United States last month, with automakers pledging many more models in the coming year.

Now that the transportation sector has become the largest U.S. greenhouse gas-producing sector, these initiatives will help bring clean transportation to consumers by making EV adoption easier and more enjoyable.

Using data to evaluate the equity of EV policies

The state of New York has passed a budget that includes a new EV purchase incentive that will provide up to $2,000 for eligible buyers of an all-electric vehicle, a plug-in hybrid EV, or a hydrogen fuel cell vehicle. Meanwhile in Minnesota, legislators have been considering an EV purchase incentive.

The CEO of the Freedom Foundation of Minnesota criticized EV purchase incentives as “a reverse Robin Hood scheme,” without the green tights, that takes money from the many (taxpayers) and subsidizes the purchases of the few (elites who buy EVs). How accurate is the assertion that the wealthy benefit the most from purchase incentives?

A free EV data tool from the New York State Energy Research and Development Authority can provide some insight. Developed with support from C2ES, EValuateNY gives users access to wide-ranging data sources from New York State’s EV market and allows easy comparisons of the factors that affect EV sales. You can find more about the tool in a previous blog post.

Our initial assessment, examining the period before the purchase incentive program has been implemented, shows that the EV market extends well beyond New York’s wealthiest counties.

Using the U.S. Census Bureau’s data on median household income by county, we established three income brackets to compare wealth between counties. Next, we broke down EV registrations by county and income bracket from the beginning of the EV market (2010) to the most recent data in EValuateNY (2014). The results show that counties with high median incomes account for slightly less than half the state’s total EV registrations.

Figure 1: Distribution of EVs by Income Bracket and County (2010-2014)

Therefore, EVs are not solely purchased in high-income counties, though households with high incomes are found in each county. However, EV registrations in three high-income counties (Suffolk, Nassau, and Westchester) account for more than 43 percent of the state’s total registrations, but only about 22 percent of the population. Clearly, these high-income counties have a higher rate of EV registrations. To dive deeper, we used EValuateNY to plot the rate of EV purchases per 1,000 vehicle registrations by county and income level, shown in Figure 2. Using a rate of EV purchases helps eliminate other factors that may affect the data, such as population or the rate of vehicle ownership. We also added the total number of EV registrations as the size of the bubble representing each county.

Figure 2: Household Income with Rate of EV Purchases and EV Registrations by Income Bracket and County (2010-2014)

This chart indicates that income may have a positive effect on the rate of EV registrations. High-income counties’ rate of EV purchases per 1,000 vehicles is higher than the range of low-income counties. With some notable exceptions, it’s also higher than the range of medium-income counties.

EValuateNY helped establish two findings[i] about the effect of income in New York State’s EV market:

1.      Counties with low and medium median incomes make up more than half of the market; and

2.      Residents of high-income counties may be more likely to purchase an EV than residents of low- and medium-income counties.

So, would New York’s forthcoming purchase incentive rob from the poor and give to the rich? This could not be entirely true, since more than half of all registered EVs are in low- and middle-income counties, and residents in these counties would arguably benefit more from $2,000 than residents from high-income communities. However, there may be some validity to the argument that on an individual basis, residents of high-income counties would benefit more from the purchase incentive because they may be more likely to buy an EV.

From a policy perspective, the purchase incentive is designed to promote EV deployment, reduce greenhouse gas emissions, and invest in the state’s economy. The program is not designed with any specific social equity goals, but New York legislators could address any potential wealth disparity by instituting an income cap, as California recently did.

The value of purchase incentives in spurring the EV market should not be lost in the discussion of income, though. A recent report by the Stockholm Environment Institute highlights the need to reduce EV price premiums as a means of encouraging consumer adoption. The effect of purchase incentives on state EV markets has been demonstrated over the past year after Georgia eliminated its $5,000 all-electric vehicle tax credit, and EV sales fell sharply.

New York State’s purchase incentive is a helpful tool for putting more electric vehicles on the roads. All New Yorkers, not only the wealthy, benefit from the reduced greenhouse gas emissions from having EVs using some of the least carbon-intensive electricity in the nation.



[i] The strength of any correlation is difficult to establish, as EValuateNY’s user interfaces are designed to provide high-level insights. A regression analysis that provides confidence intervals may be required to better understand the significance of income on counties’ rate of EV uptake. Users may conduct advanced analyses by directly accessing EValuateNY’s databases.

 

Newest Tesla faces challenges, but sends hopeful signal for EV market

The Tesla Model 3 has surged onto electric vehicle (EV) scene, with more than 325,000 hopeful customers placing $1,000 deposits in less than a week.

The new all-electric vehicle has inspired phrases like “game-changer,” “simply extraordinary,” and “a tipping point.”

Since all-electric vehicles can significantly reduce greenhouse gas emissions in the second largest emissions sector, greater interest in EVs could result in meaningful progress in addressing climate change. Looking past the initial wave of excitement, though, what does the Model 3 really mean to the EV market?

The Tesla Model 3 is a next-generation EV with a base price of $35,000 and an expected battery range of 215 miles. The vehicle is noteworthy because it reduces two primary barriers to EV adoption: price premium and range anxiety. Currently, all-electric vehicle models only allow prospective owners to reduce one of those barriers – you can choose between a relatively inexpensive vehicle with a limited range or an expensive luxury vehicle with a long range. The Chevy Bolt, which is slated for production in late 2016, will be the only vehicle with comparable range and performance when the Model 3 is released.

So how much of a game-changer is the Model 3?

Well, 325,000 deposits for a vehicle that will not begin production for another 18 months is surely an eye-opener, given that the number of deposits equals about two thirds of global EV sales for all of last year. Domestically, the leading all-electric model so far this year has been the Tesla Model S, accounting for just over 6,000 vehicles. So far this year, consumers have bought just over 15,000 all-electric vehicles that they could drive now, without an 18-month waiting period, which speaks volumes about the excitement for the Model 3.

Better EV decisions through data

February is dragging on for an extra day this year, delaying my favorite spring ritual: the opening day of baseball season. The extra day of eager contemplation has me combining a seasonal love of baseball with my year-round affection for electric vehicles (EVs). Bear with me here.

Baseball is an intensely data-driven sport. Whereas most sports are still using relatively simple stats like basketball’s “double double,” where a player reaches double digits in two statistical categories, baseball analysts predict teams’ expected wins by calculating Pythagorean scoring averages. Oakland Athletics General Manager Billy Beane fielded a winning team by using data to find players’ overlooked value, inspiring a famous book and cunningly selling Brad Pitt as a reasonable look-alike in the process.

Baseball shows the importance of data availability and statistical inferences in decision-making. Similarly, access to the best statistics may help transportation managers determine the best strategies to promote adoption of EVs, a market-ready transportation alternative that can reduce harmful emissions that contribute to climate change. The difficulty has been that data resources have been scattered, often difficult to locate and even more difficult to compile into a usable form. This is where a new data tool may be able to offer meaningful insights into EV markets.

Syndicate content