Maine legislature considers EV incentives

The Maine State Legislature is considering several measures that could create new incentives for purchasing or leasing electric vehicles.

At least two bills proposing new incentives for electric vehicles have been printed so far:

• LD 604, An Act To Create an Electric Vehicle Tax Credit: Sponsored by Senator Chenette, this bill would provide an income tax credit for the purchase of a new plug-in electric-drive motor vehicle that is eligible for a federal income tax credit. The credit would be $300 plus $50 for each kilowatt-hour of battery capacity in excess of 5 kilowatt-hours, up to a maximum credit of $1,500. (As a point of reference, the base model 2019 Nissan Leaf comes with a 40-kilowatt battery.) LD 604 has been referred to the Legislature's Joint Standing Committee on Taxation.

• LD 614, An Act To Provide Purchase Rebates for Battery Electric Vehicles: Sponsored by Representative Henry Ingwersen, this bill would establish an "Electric Vehicle Rebate Fund" to be administered by the Efficiency Maine Trust. The bill would direct the Trust to create a program, beginning July 1, 2020, that would pay a direct rebate of $2,500 to Maine residents who purchase or lease an eligible electric vehicle and meet certain criteria, including a certification of intent to retain ownership of the electric vehicle (through purchase or lease) for at least 36 months. The program would be limited to fully electric, zero-emission vehicles that have an on-board electrical energy storage device that is designed to be recharged using an external energy source. LD 614 has been referred to the Legislature's Joint Standing Committee on Energy, Utilities and Technology. 

More bills proposing incentives for electric vehicle adoption could still surface later in the Maine legislative session. For example, a list of legislative requests submitted by legislators includes LR 1380, An Act To Encourage Municipalities, State Agencies, Colleges and Universities To Adopt Electric Vehicles.

Outside Maine, a number of other states offer incentives for electric vehicle adoption. Additionally, the federal Internal Revenue Service offers a tax credit for qualifying electric vehicles, ranging from $2,500 to $7,500 per new EV purchased for use in the U.S., depending on the size of the vehicle and its battery capacity.

Vermont PUC opens electric vehicle investigation

Vermont utility regulators have opened an investigation to identify and eliminate barriers to the widespread adoption of electric vehicles in that state, following a legislative call in the state's general transportation bill for an examination of electric vehicle charging issues.

This spring, Vermont Governor Phil Scott signed into law Act 158 (H.917) of the 2017-2018 Vermont legislative session. Section 25 of Act 158 requires the Vermont Public Utilities Commission to investigate and to prepare a written report concerning the charging of plug-in electric vehicles (EV).

On July 9, 2018, the Commission issued an order opening an investigation into promoting the ownership and use of electric vehicles in Vermont. In a press release accompanying the order, the Commission noted the harmful contributions of Vermont's transportation sector to greenhouse gas emissions and global climate change, and the prospect that electrifying transportation could help the state comply with its climate and greenhouse gas goals. The order notes that commonly cited barriers to widespread EV deployment may include vehicle range limits, limited availability of charging opportunities, cost, and vehicle performance -- and even barriers more unique to Vermont, such as cold winters and a rural, mountainous landscape.

The Commission says its investigation will include multiple cycles of written filings and workshops, addressing topics including barriers to EV adoption, as well as ways EV drivers can contribute financially to road and highway maintenance. The investigation will culminate in a report to be filed with the Vermont Legislature by July 1, 2019, presenting the Commission's analysis of barriers to electric vehicle adoption and recommendations on how to reduce or eliminate those barriers.

The Commission has docketed the case as No. 18-2660-INV, and has invited interested persons and entities to file a proposed scope, structure, and schedule for the case no later than July 30, 2018.

California considers transportation electrification

California utility regulators are considering proposals by electric utilities to electrify the transportation sector.  If the three largest electrical corporations' proposals are approved by the California Public Utilities Commission, it could represent an investment of about $1 billion in transportation electrification in California over about 5 years.

The transportation sector is a major consumer of energy and emitter of carbon dioxide.  In California, the transportation sector accounts for 37 percent of statewide greenhouse gas emissions.  Electrifying transportation -- converting vehicles and trips from direct consumption of fossil fuels to EVs or electric vehicles -- can reduce emissions, particularly where the electricity supply is sourced from renewable or low-carbon resources.

To address energy and climate matters, in 2015 the California legislature enacted Senate Bill 350, the Clean Energy and Pollution Reduction Act.  SB 350 codified Governor Edmund G. Brown Jr.'s clean energy and climate change goals, establishing a statewide 2030 greenhouse gas reduction target of 40 percent below 1990 level.  SB 350 calls for pursuing those goals through a variety of measures, including the promotion of "widespread transportation electrification," defined as "the use of electricity from external sources of electrical power, including the electrical grid, for all or part of vehicles, vessels, trains, boats, or other equipment that are mobile sources of air pollution and greenhouse gases and the related programs and charging and propulsion infrastructure investments to enable and encourage this use of electricity." 

The legislation requires the California Public Utilities Commission to direct electrical corporations to file applications for programs and investments to accelerate widespread transportation electrification.  That process is now underway.  On September 14, 2016, the Commission issued an order directing the state's three major investor-owned utilities to prepare and file applications describing their proposed transportation electrification projects and programs.

On January 20, 2017, the three utilities -- Pacific Gas and Electric Company (PG&E), SouthernCalifornia Edison (SCE), and San Diego Gas & Electric (SDG&E) -- filed their applications.  As summarized by the Commission, PG&E, SCE, and SDG&E submitted proposals to invest $1 billion in transportation electrification over an approximate five year period.  Onroad medium and heavy-duty charging infrastructure proposed by SCE accounts for roughly half of this total; residential charging infrastructure proposed by SDG&E and "FleetReady Make Ready Infrastructure" proposed by PG&E round out the largest-ticket items.  Other projects include electrification of cranes and forklifts at ports, terminal yards, and airports.

The cases remain pending before the Commission, with evidentiary hearings held earlier this month.  Other cases before the Commission address proposals by three smaller utilities.

US Supreme Court considers EPA greenhouse gas emissions regulations

May the U.S. Environmental Protection Agency regulate greenhouse gas emissions from power plants and industry under the Clean Air Act?

The Supreme Court of the United States heard oral argument on this issue yesterday, in the case Utility Air Regulatory Group v. Environmental Protection Agency, Docket No. 12-1146.  How the court rules on the case will shape federal regulation of carbon dioxide and other greenhouse gas emissions in the nation.

The case arises from EPA's decision in 2010 to regulate greenhouse gas emissions from power plants and industrial facilities.  That decision stemmed from a 2007 Supreme Court ruling, Massachusetts v. EPA, requiring EPA to regulate greenhouse gas emissions from motor vehicles under Title II of the Clean Air Act.  Since 1980, EPA has held that once it regulates one type of air pollution (e.g. greenhouse gases from motor vehicles), it may (or must) broaden its regulations to cover all such emissions (e.g. greenhouse gases from all sources).  Applying this precedent in 2010, EPA found that regulating motor vehicle greenhouse gas emission standards under Title II of the Clean Air Act also compelled EPA to regulate greenhouse gas emissions under the Clean Air Act's Title I "prevention of significant deterioration" or PSD program, as well as under its Title V stationary-source permitting program.

Building on its Title II regulation of greenhouse gas emissions from cars and trucks, EPA then promulgated its Title I and Title V regulatory programs for stationary sources.  These rules regulated stationary sources emitting 75,000 tons of carbon dioxide or more per year, but triggered challenges from several states, over 70 non-governmental advocacy groups, and business interests.  While challengers raised a host of objections, one of the key substantive issues raised was whether EPA may truly regulate carbon dioxide as a "pollutant."  Challengers also mounted attacks rooted in law, questioning whether EPA's 2010 decision to regulate motor vehicle greenhouse gas emissions could legally trigger permitting requirements for stationary sources.

After the U.S. Court of Appeals for the D.C. Circuit upheld EPA's rules, challengers appealed that decision to the Supreme Court.  While the Court declined to address most of the issues challengers raised, it decided to entertain argument on one point: "Whether EPA permissibly determined that its regulation of greenhouse gas emissions from new motor vehicles triggered permitting requirements under the Clean Air Act for stationary sources that emit greenhouse gases."

The Court's official docket for Utility Air Regulatory Group v. Environmental Protection Agency can be found here, and unofficial copies of many of the pleadings can be found on SCOTUSBlog.  While the Court has not indicated when it will rule on the case, energy and other industries are watching closely for the ultimate outcome.

Vermont, Quebec announce electric vehicle corridor

Will a newly announced electric vehicle charging corridor in Vermont and Quebec lead to more electric vehicles in the region?

Solar panels on the roof of the Farm Barn at Shelburne Farms, in Shelburne, Vermont.

Electric vehicles are receiving increased interest, as drivers and policymakers look for ways to reduce the use of gasoline in the transportation sector.  For pure plug-in cars, the vehicle's range and the logistics of recharging the vehicle's battery are critically important.  Electric vehicle manufacturers try to address range anxiety through technological advances, while policymakers focus on ensuring that drivers have access to conveniently-spaced recharging infrastructure.

Today Vermont Governor Peter Shumlin and Quebec Premier Pauline Marois unveiled the first sites of the Vermont-Québec Electric Charging Corridor.  The 138-mile corridor will eventually connect Burlington, Vermont to Montreal, Quebec, using existing highways including I-89 and Canadian routes A-10, 104 and 133.  The plan calls for over the development of over 20 charging stations along the way.  Some stations are already in place, including charging stations in Sharon, Montpelier, South Burlington and Waterbury.

How quickly charging stations can recharge batteries depends on the technology used.  According to the U.S. Department of Energy's Plug-In Electric Vehicle Handbook, light-duty vehicle charging stations can be broken into three categories.  Level 1 stations offer 2 to 5 miles of added driving range per hour of charging.  Level 2 stations provide 10 to 20 miles of added range per hour of charge.  Much more expensive Level 3 or "DC fast charging" stations can add 60 to 80 miles of range in 20 minutes of charging.

Level 2 stations are proposed for the Vermont-Quebec corridor.  These stations will allow electric vehicle drivers to top off their batteries at the stations, and possibly to fully recharge their batteries overnight.  While the charge rate is still significantly slower than refilling a conventional vehicle's tank with gasoline, Vermont and Quebec hope that the cost and environmental benefits of electric vehicles will drive their greater adoption.