California is at the forefront of US states when it comes to
reducing carbon emissions. Nearly 40% of those emissions come from the state’s
transportation sector. Not only has California always been ground zero for car
culture, it also is home to several of the largest ports in America whose
operations depend on heavy duty trucks powered by diesel engines.
California’s
utility companies are directly involved in the effort to cut emissions. The
state legislature in 2015 passed a bill requiring that 50% of all the state’s
electricity come from renewable sources no later than 2030. There are signs the
state may meet that goal earlier than anticipated.
At the end of May, the California PUC approved a sweeping
initiative proposed by the utility companies it regulates that will push the
cause of vehicle electrification forward farther and faster than anyone thought
possible. “What we’re seeing is one of the largest and most well-thought-out
approaches to advancing electrification of vehicles,” Adrian Martinez, an
attorney for Earthjustice tells Green
Tech Media. “I think a lot of other utility commissions and other folks
across the country are going to be looking at this.”
The nuts and bolts of the new initiative are as follows.
Pacific Gas & Electric, which serves the San Francisco Bay area, will
invest up to $236 million in infrastructure, including $22 million for 234 DC
fast chargers at 52 locations within its service area. There will be rebates
available for up to 6,500 medium and heavy duty electric vehicles such as trucks,
cranes and forklifts at 700 commercial and industrial sites.
San Diego Gas & Electric will parcel out $137
million in rebates and installation reimbursements for up to 60,000
customers so they can charge electric vehicles at home, whether home is a
single family house or a small multi-unit dwelling.
The lion’s share of the money — $343 million — will be
distributed by Southern California Edison, which serves the Los Angeles area.
It will go toward rebates for up to to 8,500 medium and heavy duty electric
vehicles and the infrastructure needed to keep them charged at a total of 870
sites. SCE says electrifying transportation represents a “key component of the
company’s vision for a clean energy future.” It will experiment with time of
use rate structures to encourage charging at optimal times during the day.
Carlo De La Cruz works with the Sierra Club’s My Generation
100% clean energy campaign. He says California’s focus on using “regulations
working in tandem with the business community” sets it apart from other states
that are promoting transportation like New York and Washington.
He explains the newly announced program is especially
significant for Southern California, where pollution from the logistics and
shipping industries affects low income neighborhoods disproportionately.
The heavy investment in SCE’s service area is an attempt to cope with the
legacy of environmental and health impacts in those neighborhoods and make sure
those who live there receive benefits from the electrification of the transportation
sector.
Following the announcement by the California PUC, the Natural
Resources Defense Fund issued a statement saying, “This marks
the nation’s single largest investment by the electric industry to eat away at
Big Oil’s longtime monopoly over transportation fuels. Diverting billions
of gasoline and diesel fuel dollars that would otherwise go to oil companies
can help lower transportation fuel bills — and also utility bills because
electric vehicles can be charged when there is spare capacity in the electric
grid. This spreads the costs of maintaining the grid over more sales, putting
downward pressure on electric rates to the benefit of all utility customers.”
Not everyone was thrilled by the new program. Since much of
the money will come from surcharges on electricity bills, organizations
representing customers voiced their concerns. The natural gas industry also
went on record opposing the plan. PUC commissioner Carla Peterman
acknowledged those disagreements and praised the compromises that went into
devising the final programs.
“This range of opinions is not surprising. This is a new
space. There is uncertainty regarding cost and impacts and what models are most
appropriate for charging. But I appreciate everyone coming together to figure
out how to put together a reasonable portfolio,” she said at a PUC meeting in
San Francisco. “I think the proposed decision overall is consistent with our
guidance and balances well these competing aims of accelerating EV adoption,
enabling competition, reducing cost and being sustainable and fair investments
for EV drivers and ratepayers.”
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