Number of electric vehicle-related actions taken by states jumps in first quarter
U.S. states are increasingly taking legislative and regulatory actions related to electric vehicles, according to the N.C. Clean Energy Technology Center (NCCETC), which recently released its updated 50 States of Electric Vehicles edition for the first quarter of 2019.
In the first quarter, 48 states and the District of Columbia took actions related to EVs and charging infrastructure, for a total of 458 actions — more than the number NCCETC found in all of 2018. The types of actions tracked in the report include legislative bills being introduced, executive orders, regulatory dockets and utility rate cases. Specific examples include new state or investor-owned utility incentive programs for EVs and charging infrastructure, and utility-initiated requests, as well as proposed legislation, to deploy EVs or charging infrastructure.
New Jersey, California, and Massachusetts took more actions than any state, with more than 30 each during the quarter. Alaska and West Virginia were the only two states without any actions in the first quarter.
“The most common types of electric vehicle actions taken in Q1 2019 related to additional fees for electric vehicles, rebate programs for electric vehicles or charging stations, charging station development, and rate design options to encourage off-peak charging,” the report stated. “The largest number of states took actions related to electric vehicle fees, with at least 28 states considering bills adopting new fees or modifying existing charges. A wide array of states also considered various studies related to electric vehicles and rules pertaining to electric bicycles.”
The report also found a relation between states taking both action on EVs and states that are considering clean and renewable energy targets, including California, Hawaii, New Mexico, Washington, Illinois, Massachusetts, Minnesota, New Jersey and New York.
Many states are also introducing bills related to EV sales, including Hawaii, which is looking at a bill to ban sales of new vehicles with internal combustion engines by 2030. Oregon is introducing a similar bill, which would prohibit registration of any new non-electric vehicle in “highly populated” counties by 2035.
In November 2018, there were more than one million EVs on the road in the United States, with around 360,000 sold in the U.S. in 2018 — up from 200,000 in 2017. EVs now make up 1.7 percent of all light-duty vehicle sales in the United States.
According to NCCETC, charging infrastructure and range anxiety continue to remain as barriers to adoption, and legal and regulatory barriers are affecting the pace of development.
Of the actions taken during Q1, NCCETC saw trends in three areas: states have been considering aggressive electric vehicle and zero-emission vehicle targets; regulators are examining ownership models for charging infrastructure; and state legislatures are addressing transportation infrastructure funding.
“As electric vehicle adoption increases, many state legislatures are considering the impact of electric vehicles on gasoline tax revenues and transportation infrastructure funding,” explained Allison Carr, clean transportation specialist at NCCETC. “Already this year, at least five states have adopted new or increased registration fees, and some states are considering other options like vehicle miles traveled fees or surcharges on electricity used for vehicle charging.”
The NCCETC looked at how states are addressing barriers to EV and charging infrastructure deployment, policy actions being taken to grow markets for EVs, how utilities are designing rates to influence behavior of EV owners, and how states and utilities are planning to deploy and pay for EVs and EV infrastructure.
NCCETC focused on five specific policy developments that happened during the quarter:
Maryland made a number of changes or proposals in the first quarter. In January, the Maryland Public Service Commission (PSC) approved a new version of a statewide portfolio program of EVs. The program had been scaled down from its original plans of 24,000 charging stations to 5,000 stations.
The program had originally been initiated in September 2016, as part of the Exelon-PHI merger condition “to ensure that the electric distribution system in Maryland is customer-centric, affordable, reliable, and environmentally sustainable,” according to the report. The PSC was to consider a statewide EV portfolio to include residential, non-residential, public, innovation, and technology sub-portfolios.
The stations will be deployed through a number of different programs, including those deployed by utilities, incentives, and new rate options. The PSC is looking at allowing utilities to own and operate some charging stations “in order to jumpstart the development of a public charging network,” according to NCCETC.
The PSC also approved tariffs to provide temporary demand charge credits for non-residential ratepayers of Baltimore Gas & Electric (BG&E), Delmarva Power & Light, and Pepco.
“The Commission is also requiring BG&E, Delmarva, Pepco, and Potomac Edison to offer electric vehicle only time-of-use rates,” NCCETC said. “Notably, the Commission is also allowing smart charging stations to serve as sub-meters for customers on these rates, avoiding the need for a second smart meter to be installed. Maryland regulators also approved the utilities’ whole-house time-of-use rates.”
The Arizona Corporation Commission (ACC) also adopted an EV policy in January, which encourages utilities to develop new rate designs, as well as deploying EV infrastructure in “low-utilization areas.” The ACC is looking for utility proposals by June 1.
Missouri and Wisconsin both looked at different facets of infrastructure installation, including ownership, cost recovery, and grid impacts.
In February, the Missouri Public Service Commission began looking at different ownership options, including one where utilities would own and operate charging stations. The Wisconsin Public Service Commission also examined who will own and operate infrastructure.
The New Mexico Legislature passed a bill that was signed by the governor in April that requires public utilities to file transportation electrification applications by January 2021, including incentives, infrastructure deployment, rate designs, and customer education programs. EV charging stations will also become exempt from public utility regulation.
Another five states also either adopted or increased EV registration fees: Alabama, Arkansas, Kansas, North Dakota and Wyoming.
Nearly every other state is also looking at how to best build, own, and operate their EV infrastructure, as well as creating a roadmap for what it should look like in the future.
“A parallel movement to the power sector’s 100 percent clean energy trend is beginning to emerge in the transportation sector,” said Autumn Proudlove, senior manager of policy research at NCCETC. “Several states are considering bills establishing targets for all state vehicles to be zero-emission vehicles, and some legislatures are considering targets that extend to all vehicles sold in the state.”
