california transportation electrification policy - california... · california transportation...

CaliforniaTransportationElectrificationPolicy

Landscape,keyinitiatives,andcomparisontoGermany

[email protected]

5August2016

LeverstoReduceTransportationEmissions

2JoannaGubman,Visiting Fellow,Sustainable SolutionsSupported by the AlexandervonHumboldt-Stiftung/Foundation

Source: CPUC, http://www.cpuc.ca.gov/WorkArea/DownloadAsset.aspx?id=11287

BarrierstoAdoption– AViciousCycle

Stakeholderuncertaintyregardingtechnologyandvalue

Incrementalcostshigh•Vehicles•Infrastructure

Insufficientcharging

infrastructure

Limitedcustomerdemand

Limitedvehicle

availabilityandsales


*ThankstomyCPUCcolleagueNoelCrisostomoforsharingthisslidewithme!

HowCanPolicyStimulateaVirtuousCycle?

StakeholderconfidenceinEVtechnologyanditsvalue

Justifiedinvestments•Lowercosts•Clearerbusinesscase

Sufficientandwell-

integratedcharging

infrastructure

Customerdemand

Manyvehicle&chargingservice

options,moreadoption


*ThankstomyCPUCcolleagueNoelCrisostomoforsharingthisslidewithme!

Californian vs.GermanElectrification Landscape• Whataresimilaritiesanddifferencesbetweentheregions?

• Marketandregulatorystructure• Majorstakeholders• Infrastructureandgeography• Cultureandlifestyle

• Howmighttheseaspectsbereflectedinpolicy?

5JoannaGubman,VisitingFellow,SustainableSolutionsSupportedbytheAlexandervonHumboldt-Stiftung/Foundation


Californian vs.GermanElectrification LandscapeGermany California

Number of vehicles 61.5MM /0.76 percapita 34MM /0.88percapita

Auto-relatedcompanies

VW,Daimler,BMW,Bosch,otherparts suppliers,DHL

Tesla,Uber, Lyft,Google,Apple,other tech (IT),aerospace

Carculture? Yes! Especially ICengines.Butless in cities.

Yes!Especially SUVs.And more long distances.

Innovationculture Incrementalimprovement,cautious investments,angsty

Big breakthroughs,newestgadgets,riskyVCinvestments

Governing parties Conservative +Labor Democraticsupermajority

Grid infrastructure Very built outand stable Some transmission-constrainedregions and congested circuits

CO2emissions fromtransportation

17%of totalemissionsNotincluded inETS

37%of totalemissionsIncluded inETS($12.73/ton)

Airquality issues? Yes,inurbanareas Yes,among the worst inthe US

Electricity market Liberalised/deregulated,nationwide pricing,no capacitymarket

Monopolies +CAgrid operator(except municipals),nodal prices,capacity contracts,TOUrates

ResidentialRates 0.295€/kWh average 0.177$/kWh average


Californian vs.GermanElectrification LandscapeGermany California

Number of vehicles 61.5MM /0.76 percapita 34MM /0.88percapita

Auto-relatedcompanies

VW,Daimler,BMW,Bosch,otherparts suppliers,DHL

Tesla,Uber, Lyft,Google,Apple,other tech (IT),aerospace

Carculture? Yes! Especially ICengines.Butless in cities.

Yes!Especially SUVs.And more long distances.

Innovationculture Incrementalimprovement,cautious investments,angsty

Big breakthroughs,newestgadgets,riskyVCinvestments

Governing parties Conservative +Labor Democraticsupermajority

Grid infrastructure Very built outand stable Some transmission-constrainedregions and congested circuits

CO2emissions fromtransportation

17%of totalemissionsNotincluded inETS

37%of totalemissionsIncluded inETS($12.73/ton)

Airquality issues? Yes,butonly inspecific areas Yes,widespread - worst inthe US

Electricity market Liberalised/deregulated,nationwide pricing,no capacitymarket

Monopolies +CAgrid operator(except municipals),nodal prices,capacity contracts,TOUrates

ResidentialRates 0.295€/kWh average 0.177$/kWh average

JoannaGubman,Visiting Fellow,Sustainable SolutionsSupported by the AlexandervonHumboldt-Stiftung/Foundation

Californian vs.GermanPolicy Targets/StandardsGermany California

2030electricity 50%+ renewable 50%+renewable (excluding rooftopsolarand largehydro)

EVsonthe road 1million by 2020(26know) 1.5million by 2025(224know)CO2reductions(relativeto 1990)

40% in2020,55%in2030Largely ineffective ETS

40% in2030ETSinthe process of being extended

Fleetstandards(grams CO2/km)

Cars,2021:95Vans, 2020:147

Cars: 107in2021;89in2025Trucks:167in2020;126in2025

Transportationfuel energy/emissions

10%reduction intotaltransportation energy by2020,relativeto 2005Negativeprogress to date

LowCarbonFuelStandardprogram:10%reduction (vs 2011) incarbonintensity of transportation fuels by2020

Airquality (NOx,ozone,particulatematter)

EUStandards: 120µg/m3

ozone,25µg/m3 PM2.5,200µg/m3 hourlyor40µg/m3

yearly NOx,others.Compliantexcepthotspots.

US Standard:75ppbO3,12µg/m3 PM2.5.SouthCoast:70% reduction inNOx by 2023,80%by 2031.Regional ozone and PM2.5deadlines range from 2021-2031.

8

Areweatthetippingpoint?

Drivers Barriers

Stressonthegrid?

Notenoughmodelsavailable

Lackofinfrastructure,rangeanxiety

Cost

Newmarketforutilities&generators

Airquality

Cultureoftechnologyandinnovation

CO2goalsandrenewablesintegration


CaliforniaPolicies – Governor‘s Office• ZEVMandate

• Infrastructurefor1millionZEVsby2020• 1.5millionZEVsontheroadby2025• ExecutiveOrderB-16-2012

• ZEVActionPlan – interagency coordination roadmap• Facilitateregularinteragencycoordination• GHGReduction ExecutiveOrders:40%by 2020,80%by2050

• Relativeto1990• S-3-05andB-30-15

• PetroleumExecutiveOrder:50%reductionin2030• Forcarsandtrucks• ExecutiveOrderB-32-15


CaliforniaPolicies– AirResourcesBoard(CARB)Policy Name Policy Type

ZEV(ZeroEmissionVehicles)Mandate Mandate/Standard

LowCarbonFuelStandard Mandate/Standard

AdvancedCleanTransitRegulation Mandate/Standard

SustainableCommunitiesStrategies (SB375) Mandate/Standard,RegionalPlanning

MobileSourceStrategy PolicyRoadmap

AB32ScopingPlan PolicyRoadmap

SustainableFreightPlan PolicyRoadmap

GoodsMovementEmissionReductionProgram IncentiveProgram

LowCarbonTransportationInvestmentsandAirQualityImprovementProgram:IncludesCleanVehicleRebate Project,Hybrid&ZETruck&BusVouchers,etc.

IncentivePrograms(including $6,500EVrebates)

PEVCollaborative (includesmultipleagencies) Public-PrivatePartnership


CaliforniaPolicies– EnergyCommission(CEC)Policy Name Policy Type

AlternativeandRenewableFuelandVehicleTechnologyProgram(ARFVTP)• Manufacturinggrants,regionalplanninggrants,

infrastructurefunding,RD&D• $100MM/yr,alltypesofalternativefuels

Research,Development,andDeploymentFunding(RD&DFunding),RegionalPlanning,RegionalFunding

ElectricProgramInvestmentCharge (EPIC) RD&DFunding

IntegratedEnergyPolicyReport(IEPR) - includestransportationenergyforecasting, landuseplanning

PolicyRoadmap,Scenarios

PortsEnergyCollaborative Public-Private Partnership

DepartmentofDefenseInitiative Cross-JurisdictionalPartnership


CAPolicies– PublicUtilitiesCommission(CPUC)• Regulatesinvestor-ownedutilities(monopolies):

• Electric,naturalgas,andwater• Telecommunicationsandvideofranchises• Railandpassengertransportation

• Mission:• Protectingconsumersandensuringtheprovisionofsafe,reliableutility

serviceandinfrastructure atreasonablerates,• withacommitmenttoenvironmentalenhancementandahealthy

Californiaeconomy

• Authoritytoapprove/mandate:• Infrastructureinvestments• Utilityrates• Utilitycustomerrebates• Sanctionsfornon-compliance


RegulatedUtilityChargingInfrastructurePilotsSouthernCalifornia Edison SanDiegoGas&Electric PacificGas&Electric

Program status Approvedandunderway Approvedandunderway PENDINGCPUCmaymodify/deny

Budget $22million $45million,plusO&M $160million,+O&M

Duration 1-2years 4-5 years 3years

Numberofstations/sites

1,500 stations150sites

3,500stations350sites

7,500Level2stations(750sites)100DCfastcharge

Station ownership Landowner(rebated) Utility Utility

Marketsegments • Multi-familydwellings• Workplaces andfleets• Destinations

• Multi-familydwellings• Workplaces

• Multi-family• Workplaces• Schools,other

Gridintegration TOURates,demandresponsecapability

Day-ahead hourlypricing:considercircuitconditionsandgenerationforecasts

TOURates

Disadvantagedcommunities

Freeparticipation10%+ofsites




LatestCPUCPoliciesDrivenbySB350(law)• Transportationelectricitycountsasaformofbasicutilityservice• Investmentcost-benefitconsiderationsshouldinclude:

• Betterrenewablesintegrationviaimprovedsystemutilization• Energyefficiencyimprovementsintransportation• Airpollutionreductions• GHG-emissionsreductions• Alternativefuelusageincreases• Economicbenefitsindisadvantagedcommunities

• TheCPUCisrequiredtosolicitapplicationsfromtheutilitiestosupport“widespreadtransportationelectrification”• Includesallmobilesources:vehicles,boats,trains,etc.• Applicationsmustbeeitherapproved,ormodifiedandapproved• Solicitationandguidancedocumentwillbeissuedverysoon


LatestCPUCPoliciesDrivenbySB350(law)• Transportationelectricitycountsasaformofbasicutilityservice• Investmentcost-benefitconsiderationsshouldinclude:

• Betterrenewablesintegrationviaimprovedsystemutilization• Energyefficiencyimprovementsintransportation• Airpollutionreductions• GHG-emissionsreductions• Alternativefuelusageincreases• Economicbenefitsindisadvantagedcommunities

• TheCPUCisrequiredtosolicitapplicationsfromtheutilitiestosupport“widespreadtransportationelectrification”• Includesallmobilesources:vehicles,boats,trains,etc.• Applicationsmustbeeitherapproved,ormodifiedandapproved• Solicitationandguidancedocumentwillbeissuedverysoon


Applicationguidancewillbeissuedverysoon,andtheapplicationsthemselveswilllikelybefiledjusta

fewmonthsthereafter,sostaytuned!

california transportation electrification policy - california... · california transportation...

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