2017 DRIVE CLEAN SEATTLE Implementation Strategy

JUNE 2017

Seattle Office ofSustainability &Environment

TABLEOFCONTENTS

1|EXECUTIVESUMMARY..................................................................................................3

2|INTRODUCTION.............................................................................................................6

3|BARRIERS&OPPORTUNITIESFORACCELERATINGELECTRICVEHICLEADOPTION..10

4|INTERDEPARTMENTALSTRATEGIES............................................................................19

5|RACIALEQUITYANALYSIS............................................................................................31

6|CONCLUSION...............................................................................................................34

ACKNOWLEDGEMENTS

SeattleOfficeofSustainability&EnvironmentAuthors

• JessicaFinnCoven,Director • ChrisBast,ClimateandTransportationAdvisor • TracyMorgenstern,ClimateProtectionProgramManager

Contributors

• BrendanO’Donnell,SeattleCityLight• EvanCorey,SeattleDepartmentofTransportation• MikePodowski,SeattleDepartmentofConstructionandInspections

EXECUTIVE SUMMARY

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RoadtransportationrepresentstwothirdsofSeattle’sclimate-changingcarbonpollution.Inadditiontoreducingthemilesweneedtodrivetomeetourdailyneedsandmovegoodsaroundthecity,wemustelectrifyourcars,buses,andtruckstomeetourcarbonneutralitygoals.Seattle’scarbonfreeelectricityisaninvaluableresourceinmeetingthisgoalaseverygallonofgasolineordieselwhichisreplacedbyelectricityisa100%reductionincarbonpollution.

Whilewecontinuetoexpandtransitservices,lightdutyvehicles,whetherowned,shared,autonomous,orpartofafleet,willremainanimportantcomponentofthetransportationsystem.Tothatend,theCitysetagoaltoincreaseelectriclightdutyvehicleownershipto30%by2030.Tomeetthisgoal,MayorMurraylaunchedtheDriveCleanSeattleInitiativetosignificantlyexpandourworktoelectrifythetransportationsectoratscaleandtoputusonthepathtomeetourcarbonneutralgoal.

SeattleisrankedasoneofthetopUSmarketsforelectricvehicles(EVs)withanelectricvehiclesalessharethatisfourtimesthenationalaverage.Asoftheendof2015,Seattleranked7thofthe50largestUScitiesinbothhighestelectricvehiclesalesshareandmostextensivepublicelectriccharginginfrastructure.Sofarin2017,EVsalesareup74%intheUnitedStatesover2016andreachedanewrecordof1.2%ofallUScarsales.

Whilethisearlymarketgrowthisimpressive,significantbarrierspersistwhichpreventmorewidespreadadoption.Our research shows that the most significant barriers include the up-front vehicle cost, the convenience oravailabilityofcharging,andgeneralconsumerawarenessaboutelectricvehicles.Toreachourgoals,Seattlemustdeployacomprehensivesuiteofstrategiesthataddressthesebarrierswhilecenteringenvironmentaljustice.Theexperienceof citieswith thehighest rates of EV adoptionprovide important lessons for Seattle. Following theexampleofotherleadingcitiesandthinkingaboutouruniquesetofcircumstancesandcharacteristics,Seattle’sEVstrategiesshould:

• Becoordinatedandcomprehensiveandfeatureadiversesetofstakeholders.• Leveragetechnologytoadvancethegoalsofashared,cleanandequitabletransportationsystem.• Ensurethebenefitsofacleantransportationsystemaccruetothosemostimpactedbytheairpollutionof

thecurrentsystem.• Facilitategreateraccesstochargingandprioritizepubliclyavailablecharginginwayswhichenableshared

mobility,fleetelectrification,andotherpolicygoals.• Increase consumer exposure to electric vehicles and awareness about the benefits of electrification

throughsustainedprogramsandoutreachactivities.• ElectrifytheCity’smunicipalfleettoleadbyexampleanddemonstratebestpractices.

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DriveCleanSeattleImplementation2017-2018

STRATEGY IMPLEMENTATIONACTION LEADDEPARTMENT

SmartCities:Leveragetechnologytoadvancethegoalsofashared,cleanandequitabletransportationsystem.

AdvanceelectricsharedmobilityatSharedMobilityHubsbydevelopinginfrastructureimplementationroadmapforSharedMobilityHubs.

SDOT

Developapolicyframeworkforautonomousvehiclestoencourageinvestmentinelectricvehicletechnologiesandsharedmobility.

SDOT

RaceandSocialJustice:Maximizethebenefitsofacleantransportationsystemforthosemostimpactedbytheairpollutionofthecurrentsystem.

PartnerwiththeEnvironmentalJusticeCommitteetoimplementprojectsinEEIcommunitieswhichdeliverracialequityoutcomesidentifiedintheDriveCleanSeattleRacialEquityToolkit.

OSE

CompleteadditionalracialequitytoolkitsformajorDriveCleanSeattleprojectsandpolicies.

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EVsandEVCharging:Increasetheadoptionofelectricvehiclesbyfacilitatingaccesstocharging.

AdvocateforVolkswagensettlementfundingfromboththeStateMitigationFundandtheZEVInvestmentFundtoaccelerateEVadoptioninSeattleandbenefitingSeattleresidents.

OSE

Developanetworkofoff-streetchargingstationclustersbydevelopinganoff-streetEVSEclusterplan.

SDOT

Explorepathwaystoallowelectricvehiclechargingintheright-of-way. SDOT

Install20DCfastchargersaspartofCityLightDCFCpilotprojectin2017and2018

CityLight

LaunchCityLightresidentialchargingpilotprojecttoinstallatleast200EVchargersincustomer’shomes.

CityLight

DevelopEVreadycodepackagestoensurebuildingsandparkinginfrastructurecanaccommodateelectricvehicles.

OSE

CityLeadership:Electrifythecity’sfleettodemonstratebestpractices.

LaunchaworkplacechargingprogramforCityofSeattleemployees. OSEInstall200newchargingstationsforfleetvehiclesin2017/18andachieve40%electrificationofcurrentlightdutymunicipalfleet.

FAS

PartnerwiththeElectricPowerResearchInstitute(EPRI)totestarangeofchargingtechnologiesontheCity’sfleetvehiclesattheSeaParkGarage.TheprojectwillhelpCityLight(andtheCity’sFleetManagementDivision)understandwaystoleveragemanagedchargingtechnologytomitigatetheneedforutilityandcustomerinfrastructureupgrades.

CityLight/FAS

Fosterpublic-privatepartnershipswithelectricvehicleindustrypartnerstofacilitateinvestmentincharginginfrastructureandelectricsharedtransportation.

OSE/FAS

OutreachandAwareness:Increaseconsumerexposuretoelectricvehiclesandawarenessaboutthebenefitsofelectrification.

Developwebsitetoprovideresidentsandbusinessesinformationaboutelectricvehiclesandelectricvehiclechargingandtopromoteelectrictransportation.

OSE

ParticipateinNationalDriveElectricWeekandotherEVShowcaseandRide&Driveeventsandactivities.

OSE

INTRODUCTION

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ElectricVehiclesasaClimateStrategyIn2013,theCityofSeattlesetagoaltobecarbonneutralby2050.Transportationisthelargestsinglesourceofclimate and air pollution in Seattle which disproportionately impacts communities of color and lower incomeresidents.ThegoodnewsisthatSeattleitesareridingtransitmore,drivingcleanercars,andputtinglessmilesonthem.Thistrendisexpectedtocontinue;howevermoremustbedonetomeetourclimategoalsandmitigatethedisproportionate impactsofclimateandairpollution. Inadditiontoreducingvehiclemiles traveledanddrivingalone,wemustalsoreplacetheoilinourcars,trucks,andbuseswithCityLight’scarbonneutralelectricity.

In2016,theCitysetagoalto increaseelectric lightdutyvehicleownershipto30%by2030.Tomeetthisgoal,Mayor Murray launched the Drive Clean Seattle Initiative to significantly expand our work to electrify thetransportationsectoratscaleandtoputusonthepathtomeetourcarbonneutralgoal.ThisbriefreportexploresthefactorsassociatedwithhighEVadoptioninothercities,examinesopportunitiestofurtheradvanceourwork,andidentifiesneartermactionstomeetthe2030goal.

EVsinSeattleSeattlehasbeenworkingtoencourageadoptionofEVsinSeattlesince2009.InitialworkfocusedonensuringthatSeattle was plug-in ready for the first generation of EVs by working to streamline permitting for charginginfrastructure, incorporating EVs into the municipal fleet, developing a regional infrastructure network, andpromotingoutreachandconsumerawareness.

Private sector electrification was advanced through a combination of federal, state, and local action. Federalfunding supported the installation of public and private charging stations in Seattle through the EV Project.Washington State partnered with Oregon, California, and British Columbia to create the West Coast ElectricHighway,installingDC/FastChargingstationsevery25-50milesalongtheI-5corridorandothermajorroadwaysinthePacificNorthwest.From2011to2013theCityoperatedapilotprogramtoprovidepublicaccesstocharginginfrastructureinCity-ownedormanagedparkinggarages.ThepilotprogramwasagoodopportunityfortheCitytolearnaboutdifferentchargingstationtechnologies,howdriverswouldinteractwithpublicchargingstations,andthecomplexityofmanagingtheservice.TheCitytransferredownershipandresponsibilityforthestationstositehostsattheendofthepilotprojectandsomeremainoperationaltoday.

In2010,Seattlewasawardedfederalfundingtobegininvestingintheelectrificationofthemunicipalfleet.TheseearlyinvestmentsallowedtheCitytogainexperienceasanindustryleaderinfleetelectrificationbyoperatingoneofthelargestmunicipalelectricvehiclefleetsinthenation.Seattlecurrentlyoperatesover125on-roadEVs(20%ofthelightdutyfleet),71piecesofelectricoff-roadequipmentandover500conventionalhybrids.Inadditiontothecity’scentralmotorpool,EVsaredeployedinmostcitydepartmentsincludingpolice,fire,transportation,parks,andbothmunicipalutilities.FleetdatashowsthatEVsoffera98%reductioninclimatepollution(thankstoSeattleCity Light’s carbon neutral electricity) and a 40% reduction in operating costs over conventional gas poweredvehicles.Seattle’sexperienceunderscoresthestrongenvironmentalandbusinesscaseforfleetelectrification.

OneofthefirstDriveCleanSeattle implementationstepswasanExecutiveOrderdirectingCitydepartmentstoreducefleet-relatedclimatepollutionbypurchasinglow-emissionorelectricvehicles,usingothercleanfuels,andprohibitingidling.Theseactionswillhelpusmeetthe50%fleetemissionsreductionby2025goalestablishedintheDriveCleanSeattleGreenFleetActionPlan.CorestrategiesintheGreenFleetActionPlanareelectrification,cleaner

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fuels, increased efficiency, and a green fleet standard for fleet procurement. Specific fleet actions underwayinclude:

• Purchase100newEVsthrough2017(toachieve40%electrificationofcurrentlightdutyfleet);250EVsby2020(70%oflightdutyfleet)withatargetof400EVsby2023(100%oflightdutyfleet).

• Install200EVSEforfleetvehiclesin2017/2018,300EVSEby2020and400EVSEinstalledforfleetby2023.• WorkwithequipmentmanufacturerstoparticipateinfleetdemonstrationsofEVtechnologyinmedium

andheavydutyvehiclesoverthenextfiveyears.

CurrentLandscapeinSeattleSeattleisrankedasoneofthetopUSmarketsforelectricvehicleswithanelectricvehiclesalessharethatisfourtimesthenationalaverage.Asoftheendof2015,Seattleranked7thof the50 largestUScities inbothhighestelectric vehicle sales share (2nd highest outside of California) and most extensive public electric charginginfrastructure(3rdhighestoutsideofCalifornia).

Plug-inElectricVehicleRegistrationsbyYear:

2010 2011 2012 2013 2014 2015 2016 TOTAL

Seattle 6 273 370 975 962 962 1236 4784

Washington 20 1204 1906 4726 4649 4192 5381 22078

Seattleshare 30.00% 22.67% 19.41% 20.63% 20.69% 22.95% 22.97% 21.67%

DatacourtesyoftheElectricPowerResearchInstitute.

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ThroughMarchof2017,therewere359additionalEVregistrationsinSeattle,bringingthetotalto5,143.

ChartcourtesyoftheElectricPowerResearchInstitute.

Currently,EVbuyersinSeattlecantakeadvantageofboththefederaltaxcreditofupto$7,500andtheWashingtonStateandlocalsalestaxexemptionofuptoabout$3,100.Thetotalavailablefinancialincentivedependsonthetypeofvehicleandlocalsalestaxrates.

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BARRIERS & OPPORTUNITIES FOR ACCELERATING ELECTRIC

VEHICLE ADOPTION

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BarrierstoElectricVehicleAdoptionModernelectric vehicleswere introduced in2010and reached1million inglobal sales inSeptember2015.ByJanuary2017,globalsalesdoubledto2million.ThroughQ12017,EVsalesareup74%intheUnitedStatesover2016andreachedanewrecordof1.2%ofallUScarsales.Whilethisearlymarketgrowthisimpressive,significantbarrierspersistwhichpreventmorewidespreadadoption.Bybetterunderstandingthebarriersandstrategiesinleadingcitiesforaddressingthebarriers,wecanbetteridentifythebestapproachforacceleratingEVadoptioninSeattle.Ourresearchshowsthatthemostsignificantbarriersincludetheup-frontvehiclecost,theconvenienceoravailabilityofcharging,andgeneralconsumerawarenessaboutelectricvehicles.

Cost

Thoughelectricvehiclesoffersignificantfuelandmaintenancesavingscomparedwithnon-electricvehicles,theup-front cost of an EV remains a barrier for many, particularly for lower income residents, who aredisproportionately impacted by the climate, air, andwater pollution from fossil fuel use in our transportationsystem. At just over $30,000, theMSRPof a 2017Nissan Leaf ($30,680) is significantly higher than that of itsconventional counterparts: the 2017 Nissan Sentra ($16,990) and Altima ($22,500). Leading, perhaps, to areputationasanicheluxuryproduct,moreexpensivemodelshavedominatedtheearlymarketforelectricvehiclesintheUnitedStates.In2016,TeslasoldmoreelectricvehiclesintheUnitedStatesthananyothercarmakerandtwomodels–theTeslaS($71,200)andtheTeslaX($85,500)wereamongthefivemodelsofEVswhichsoldatleast10,000units(of159,139vehiclestotal)in2016.1

Thismaybechanging:A2016studybyBloombergNewEnergyFinanceforecaststhat“duringthe2020sEVswillbecomeamoreeconomicoptionthangasolineordieselcars inmostcountries”andthatby2040,“long-rangeelectriccarswillcostlessthan$22,000(intoday’sdollars)”.2Still,theaffordabilitybarrierremainsandgovernmentsatalllevelsarelookingatinnovativewaystobringdowntheinitialcostofEVstoincreaseaffordabilityforresidentsofallincomelevels.

ConvenienceofCharging

Theability to conveniently chargeanelectric vehicle is a key factor forelectric vehicleadoption,however, theavailabilityofchargingiscurrentlylimited.Electricvehiclesaretypicallychargedathome,atwork,oratpublicly-accessiblechargingstations located incommunitiesoralonghighwaycorridors. Informationabout thetypesofchargingisprovidedbelow:

Residentialchargingisthemostcommontypeofchargingandtakesplaceatthedriver’spersonalchargingstationathomeovernightoratothertimeswhenthereislittledemandforthevehicle.ThisisusuallyaLevel1orLevel2chargingstationwhichchargesbatteriesoverseveralhoursdependingonthepowerofthechargerandthebattery’sstateofcharge.Thevehicleownerpaysfortheelectricitythroughtheirutility

1https://www.forbes.com/sites/rrapier/2017/02/05/u-s-electric-vehicle-sales-soared-in-2016/#51c97dc5217f2https://www.bloomberg.com/features/2016-ev-oil-crisis/

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bill.Chargingathomeprovideseasilyaccessiblecharging,however,itrequiresadriveway,garage,orotherparkingspaceandchargingequipmentwhichmayrequireanexpensiveelectricalupgrade.

Workplace charging effectively doubles the all-electric commuting range for EVs and some employersprovide free or heavily subsidized electricity. According to the Department of Energy, employeeswithaccesstochargingatworkaresixtimesmorelikelytodriveanEV.3AsofJanuary2017,morethan750workplaceshostedover7500chargingstations.However,thosestationswereaccessibletoonlyaboutonemillionemployeesacrossthecountry.

PubliclyavailablechargingincludesbothLevel2chargingstationsandhigh-poweredfastchargerswhichcanfullychargemostEVbatteriesinunderthirtyminutes.Thesechargingstationsaretypicallycommercialventuresforafeeorfreeandofferedinpartnershipwithparkingspaceowners.Theyaregenerallyfoundattransitstations,publicparkinglots,retaillocations,reststops,andcurbsideinsomeurbanenvironments.EVchargingremainsanascentindustrywithmultiplebusinessmodelscompetingtoseewhichwillbethemostsuccessful.The industry reliesheavilyon financialpartnershipswithsitehostsandsubsidies fromgovernmentandutilities.

ConsumerAwareness

In2015,theConsumerFederationofAmericafoundthatgreaterconsumerknowledgeaboutEVsdirectlycorrelateswithconsumerdemand.However,arecentreviewofelectricvehicleconsumerawarenessandoutreachfoundthatthereisa“generallackofknowledgeandawarenessaboutelectricvehicles.”4Infact,lessthanhalfofUSconsumerscannameanEVmakeandmodeland,ofthathalf,95%couldonlynametheNissanLeaforTeslaModelS.AwarenessofEVincentivesissimilarlylowwith44%ofUSconsumersawareofthefederaltaxincentiveforEVpurchases.Theextensive literature review by the International Council on Clean Transportation (ICCT) also confirms thatexperiencewithEVsiscloselylinkedwithEVadoption.ThisexperiencemostlycomesfromemployeesdrivingEVsatwork,drivingorridinginanEVthatispartofasharedmobilityfleet,oraspartofarideanddrivepromotionalcampaign. Ingeneral, the ICCTconcludes,“consumerswithgreaterknowledgeorexperiencearemore likelytovalueelectricvehicleshigher,considerelectricvehiclesasafuturepurchaseoption,andbewillingtopayapremiumforthetechnology.”

StrategiesinLeadingEVCitiesTheelectricvehiclemarketprimarilyemergedinresponsetoCaliforniastatemandatesandassociatedpoliciesandprograms.Asexpected,CaliforniacitiesleadinEVadoptionrates.WefirstexploretheCaliforniacontextandthenlookatthestrategiesofleadingEVcities.

3https://energy.gov/eere/vehicles/workplace-charging-promote-charging-work4http://www.theicct.org/literature-review-EV-consumer-awareness-and-outreach

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California

RepresentingabouthalfoftheUSelectricvehiclemarket,Californiaisagloballeaderinelectricvehicles.Californiahasmorethantwicethecharginginfrastructure,morethanthreetimestheelectricmodelavailability,andmorethanfourtimestheelectricvehiclemarketshareasnationalaverages.5

The California advantage can largely be attributed a comprehensive portfolio of regulations, policies, financialincentives, charging infrastructure investments, and public-private partnerships which have accelerated theadoptionofEVsinthestate.

ZEVMANDATECaliforniacurrentlyhasawaiverundertheCleanAirActallowingittosetstrictervehiclepollutionstandardsthanthefederalstandardssetbytheEnvironmentalProtectionAgency.OtherstatescanadopttheCaliforniastandards,butcannotadopttheirownstandards.Ninestates(Oregon,and8statesintheNortheast)haveadoptedCalifornia’sZEV program to require automakers to sell zero-emission vehicles in their states. The ZEV program requiresautomakerssellingvehiclesinCaliforniatosellacertainpercentageofelectricvehicles.ThecurrentiterationoftheZEVmandatewouldrequireapproximately15%ofvehiclessoldinCaliforniatobeelectricby2025.Asof2015,theZEVmarketrepresented65%ofUSEVsales.

TheZEVmandatehashadasignificantimpactonmodelavailabilityinCalifornia.TheleadingCaliforniacitiesinEVadoptionratehaveovertwentymodelsavailable.However,ICCTdatashowsthat80%ofmetropolitanareasacrossthecountryhavenomorethanfiveEVmodelsavailableandthat51%oftheUSpopulationliveinanareawithfiveorfewerEVmodelsavailable.TheaveragenumberofmodelsavailableinCaliforniacitiesisjustover15whiletheUSaverageisabout7.

LOWCARBONFUELSTANDARD(LCFS)TheLCFSwasadoptedinCaliforniain2009andisaperformance-basedregulationthatrequiresregulatedpartiestoreducethecarbon intensityof their fuelmixbyat least10%by2020.Theprogramestablishesanemissionscredit-tradingsystem.CreditsaregeneratedbycleantransportationfuelproviderswhoselllesscarbonintensefuelandthenselltheircreditstoaregulatedrefinerywhichusesthecredittomeetitsLCFSobligation.Thecreditsystemhas generatedmillions of dollars of investment in clean transportation choices for Californians.Municipal andcorporatefleetsandelectricvehiclesupplyequipmentprovidershaveleveragedthecredittradingmarketplacetofundtheirEV-relatedinvestments.

CLEANVEHICLEREBATEPROGRAMCalifornia’scarboncap-and-tradeprogramhasraisedbillionsofdollarsinrevenue.SomeofthisrevenuefundstheCleanVehicleRebateProjectwhichoffersrebatesofupto$7,000fornewzeroemissionvehicles inadditiontofederalincentives.Throughthisrebateandothertypesofincentivesspecificallydesignedforlowandmoderateincomedrivers,Californiahasincentivizedthepurchaseofover100,000cleanvehiclessince2010.

5http://www.theicct.org/sites/default/files/publications/ICCT_EV_Calif_Cities_201609.pdf

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LessonsofLeadingEVCitiesAreviewofcitiesintheUnitedStatesandgloballyrevealsfourconditionspresentincitieswithhighEVadoptionrates:

1. CoordinatedandcomprehensiveactionbydiversestakeholdersCitieswithhighEVadoption rates featurebroadand coordinatedactionby government, utilities, non-profits,and theprivate sectoraddressing the threemajorbarriersof cost, convenience,andconsumerawareness.Governmentpoliciesandincentivescreatetheregulatoryandfinancialenvironmentnecessaryto foster private sector investment in EV infrastructure and services as well as individual purchases.Businesses invest in electrification of their fleets and workplace charging demonstrating innovationsolutions to electrification challenges. And the non-profit sector and government conduct consumeroutreachandadvocacyhelpingtomainstreamEVadoption.Togethertheseactions,particularlywhenwell-coordinated,createtheenvironmentwhichleadstowide-scaleEVadoption.

2. PublicelectricvehiclechargingavailabilityEventhoughmostpeoplechargetheirvehiclesathome,theavailabilityofpublicandworkplacechargingisakeydriverofelectricvehicleadoptioninleadingEVcities.Itislikelythatpubliccharginggivesdriversconfidence that theycanchargewhenneeded, increasesconsumerawarenessofelectricvehicles,andhelpstomainstreamEVsinconsumers’mindsasaviableoption.Acrossthecountry,citieswiththehighestEVmarketsharehavefourtimesasmuchpublicchargingasothercities.Workplacecharging isalsoanimportant factor. InSan Jose, forexample,SiliconValleybusinesseshave investedheavily inworkplacechargingandthecityofSanJosehasthelargestEVmarketshareofthelargestfiftycitiesinthecountry.Infact,SanJose’sshareisalmostdoublethatofthesecondhighest–SanFrancisco.

http://www.theicct.org/leading-us-city-electric-vehicle-2016

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3. IncentivesIncentivesremainanimportantcomponentofgovernmentactiontodriveEVadoption.Incentivesincludepurchaseincentivesliketaxcreditsandrebates,operatingincentives,parkingincentives,orspecialaccesstoHOVlanesorotherbenefits.LeadingEVcitiesallhavesignificantlyhigherincentivesavailableforthepurchaseandoperationofelectricvehicles.ThisincludesWashingtonState,wherethesalestaxexemptionhashelpeddriveearlyadoptionofEVs.Thepowerofincentiveswasevidentwhenin2015,theGeorgiastatelegislaturesuspendeda$5000taxcreditforthepurchaseofanelectricvehicle,resultinginan80-90%declineinsales.

4. ElectricvehiclemodelavailabilityTheavailabilityofawiderangeofEVmodelsislinkedtohighadoptionrates.Avarietyofoptionsisneededtomeettherangeofconsumerneedsanddrivecompetitioninthemarket.ThestateswiththegreatestnumberofEVmodelsarethosewhereregulationsrequireautomanufacturerstosellzeroemissionvehicles(ZEV).Asof2015,65%ofnationwideEVsalesoccurinstateswithZEVmandates.California,thefirststatewithaZEVmandate,accountedfor54%oftheUSmarketin2015.ManufacturerstypicallyreleasemodelsinCalifornia,theninotherstateswithZEVmandates,andthenmorebroadly.Consequently,51%oftheUSpopulationlivesinacitywithfiveorfewerEVmodelsavailable.However,WashingtonState,whichdoesnothaveaZEVmandate,has relativelyhighEVmodelavailability.Localefforts to increasedemand forelectricvehiclesislikelytoincreasethenumberofmodelsavailableasautomakerswilllooktoleadingEVcitiesforinitialdeploymentofnewelectricvehiclemodels.

http://www.theicct.org/ev-markets-calif-cities-sept2016

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PotentialStrategiestoAccelerateEVDeploymentThereisnoonesingleactionthatcitiescantaketosignificantlyincreaseEVadoptionrates.Successfulcitiesdeployacomprehensivesuiteofstrategiesthataddressthebarriersofcost,convenience,andconsumerawareness.Thesestrategiesareexploredbelow.

Cost

PURCHASEINCENTIVESOneofthemostsuccessfulwaystoencouragethepurchaseofanelectricvehicleistoreducethepurchaseprice.Purchaseincentivesusuallytaketheformofataxcreditorrebateonthepurchaseofanewelectricvehiclebutcouldbedesignedtoapplytousedvehiclesaswell.Becausepurchaseincentivesinvolvesignificantcosts,federaland state governments are generally best positioned to offer these types of incentives. However, creativelydesignedpurchaseincentivesarepossibleatthecityleveltoo.Forexample,manycitiesinChinafeatureregionalpurchasesubsidiesandtaxexemptionsandthemetropolitangovernmentinParisoperatesacash-for-clunkersstylesubsidyprogramwhichprovides25%rebateswhenanoldervehicleisreplacedwithalowemissionvehicle.

OPERATINGINCENTIVESDecreasingthecostofoperatinganelectricvehicleandprovidingimprovedaccessindenseurbanenvironmentscanincreaseuptake.Examplesinclude:

• Reduceoreliminateregistrationfees• Reduceoreliminatetolls• Reduceoreliminatepublicparkingfees• Provideaccesstorestrictedtravellanes,suchasHOVlanesorbuslanes

Research indicates that these incentivesareeffective inadvancingEVadoption.However, these incentivescanworkatcrosspurposeswithotherimportantgoalssuchasgeneratingfundingtomaintaintheroadwaysystem,whichisalsousedbyEVs,andmanagingtraveldemandbyencouragingsharedmobilityandreducingcongestion.Therefore,theseincentivesneedtobebalancedwiththefullrangeoftransportationpolicygoals.Theseconcernsare increasingly relevantasadoptionrates increase.Alternately,operating incentivescouldalsobedesignedtoincreasethecostofoperatingpollutingvehicleseither throughregistration fees,variable tollingrates,orothermechanisms.Though,theseoptionscouldraiseconcernsaroundracialequityandsocialjustice.

ConvenienceofCharging

PUBLICCHARGINGThe availability of public charging infrastructure is significantly linked to high EV adoption rates in cities. Localgovernmentscanplayaroleinincreasingpublicchargingnetworksby:

• Streamliningpermittingandreducingpermitting-relatedcosts• Providingdirectfinancialincentivessuchasrebates,grants,orthroughpublicprivatepartnerships• Investingingovernment-ownedinfrastructure

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• Developing codes and policies to allow and encourage charging stations to be installed inmore areasthroughoutthecity

• PartneringwithEVstakeholderstoensurechargingstationsareaccessibletothepublicthroughwebbasedmapsandotherEV-relatedappswhichshowtheavailabilityofpublicchargingstationsinanarea

WORKPLACECHARGINGAccordingtotheDepartmentofEnergy,anemployeewithaccesstochargingatworkissixtimesmorelikelytodrive an electric vehicle than the average worker. Local governments can adopt workplace charging policiesthemselves,providegrantsorrebates,promotesuccessfulworkplacechargingprogramsbyareabusinesses,andpartnerwithcommunitystakeholderstoprovideworkshopsandotherinformationtoencouragetheadoptionofworkplacechargingbylocalbusinesses.Itisimportanttodesignworkplacechargingpolicieswhichsupportthegoalofreducingdrivealonecommutetrips.Strategiesmayincludecombiningworkplacechargingwithlocalorregionalvanpoolorcarpoolprogramsorprioritizingtheseprogramsinareaswithpoortransitaccess.

HOMECHARGINGChargingathomeistheeasiestandmostpopularwayfordriverstochargetheirelectricvehicle.TherearetwoprimarywayscitiescanmakehomechargingmoreconvenientforresidentsandencouragegreaterEVadoption:

• Providinggrants,rebates,orreducedpermittingexpensesfortheinstallationofhomechargingstations• DevelopingEV-readycodesandpoliciestoencourageEVchargingstationsformulti-unitdwellings

ConsumerAwareness

FLEETSMany fleets have outpaced the public in the integration of electric vehicles. Government purchases, stateincentives,andprocurementguidelinesandtargetshavehelpeddrivethissegmentofthemarket.Itisalsolikelythat corporate and government fleets, with greater access to capital and a fiduciary duty to constituents orshareholders,areinabetterpositionthanindividualstoseekoutandrealizethereturnoninvestmentofelectricvehicles.

In addition to increasing electric vehicle adoption, fleet EVs increase awareness of EVs because they provideopportunities for people to drive and become familiarwith the technology. Research indicates that as peoplebecomemorefamiliarwithelectricvehiclesandhavemoreexperiencedrivingandridinginthem,theyaremorelikelytopurchaseonefortheirownuse.

Seattleparticipates in thePacificCoastCollaborative’sWestCoastElectric Fleets initiativewhichprovides fleetmanagersatoolkittohelpfacilitateEVdeployment.Manycompaniesinourregionarealsoworkingtoreducetheircarbonfootprintandhaveinvestedinelectricfleetvehicles.

Technologyisrevolutionizingthewaypeoplemovewithincities.Asthepopularityofsharedmobilityservicesgrows,sodoestheopportunitytoreducepollutionfromthetransportationsystem.Sharedmobilityfleetvehiclestypicallydrivemanymoremilesperyearthantheaveragevehicleincreasingtheeconomicandenvironmentalreturnoninvestment.TheCityofNewYorkrecentlysetagoaltoconvertathirdofthetaxifleettoEVsby2020andthecitiesofDenver,Portland,Seattle,andNewYorkrecentlycollaboratedwithmajortransportationsectorcompaniesonafederalgrantapplicationtoacceleratetheuseofEVsinlocalsharedmobilityfleets.

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PUBLICOUTREACHANDENGAGEMENTACTIVITIESDifferenttypesofoutreachandawarenessactivitiesfromadiversesetofactorshelpincreasegeneralknowledgeandunderstandingaboutelectricvehicles.Researchshowsthatsustainedprogramsthatutilizeabroadrangeofoutreach activities are themost successful at capturing awide audienceof potential consumers. The rangeofactivitiesinleadingcitiesincludes:

• Informationalwebsites• Rideanddrives• NationalDriveElectricWeekpromotionalevents• Ribbon-cuttingsforpublicchargingstations• Advocacyandtradeassociationorganizations• Onlineorapp-basedmapsofchargingstations• Highlyvisiblesignage• EVTourism• Dealerawarenessactivities• EVgroupbuyprograms• EVshowcasesordemonstrationzones• Youtheducationandprofessionaldevelopment• Awardsandrecognition

INTERDEPARTMENTAL STRATEGIES

4

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Meeting theCity’sgoals for reducing transportationpollution requiresacoordinatedeffortacrossmultiplecitydepartments:

• TheOfficeofSustainabilityandEnvironmentmanagestheDriveCleanSeattleinitiativecoordinatingtheCity’seffortacrossdepartments.

• TheDepartmentofTransportationmanagestheright-of-way,includingEVchargingandparking,andcoordinatestheintegrationofelectricvehiclesintoother“SmartCities”strategiessuchasautonomousandsharedmobility.

• AstheCity’smunicipalelectricutility,SeattleCityLightmanagesthecity’selectricgridandisworkingtoensurethecitycanmeettheelectricalneedsofthetransitiontoelectricityasatransportationfuel.Further,CityLightisresponsibleforinstallingandoperatinganycity-ownedpubliclyavailableelectricvehiclechargingstations.

• TheDepartmentofConstructionandInspectionsisresponsibleforthebuildingandenergycodesandensuringthatthecity’scodesarepreparedfortheincreaseinelectricvehicles.

• TheDepartmentofFinanceandAdministrativeServices’FleetManagementDivisionimplementstheDriveCleanSeattleGreenFleetActionPlantoelectrifythemunicipalfleet.

Thissectionofthereportexplorestheimpactsandtheopportunitytosupporttransportationelectrificationacrossdepartments,specificallyincludingSeattleCityLight,theDepartmentofTransportation,andincludingareviewofthecodeenvironmentforelectricvehiclesandEVcharging.

SeattleCityLightTechnicalReportAsthetransportationmarketevolvesinSeattle,itisincreasinglyclearthatadoptionofelectricvehiclesandotherelectrifiedtransportationwillcontinuetogrow.Thetechnology,too,israpidlychanging;newvehicleswithlargerbatteries and extended range have the potential to fundamentally change how customers use the electricitysystem.

EVsatscalehighlightsbothanopportunityandapotentialchallengeforSeattleCityLight.Combined,thesevehiclesarealargenewloadthatcouldaddvaluebymoreeffectivelyutilizingthesystem,whiledramaticallyreducingthecity’s largest sourceofgreenhouse-gasemissions.Unlikeotherdistributedenergy resources,EVs increase totalelectricitydemandandhelpdrivedownratesbyspreadingutilityfixedcostsacrossgreatervolumetricsales.Or,conversely, EVs could further constrain the electric grid. Vehicle charging may require the utility to procureadditionalgeneratingcapacityandupgradedistributioninfrastructuresoonerthanplanned.

To illustrate this point, the figures below compare two cites studied in the EV Project.6 The graph on the leftillustratesatypicaldailyresidentialchargingpatternwherethere is little influencefromthelocalutility.Driversbegintochargetheirvehicleassoonastheygethomeintheevening,whichisalignedwiththeutility’seveningdistributionpeak.Incontrast,thegraphontherightillustratesadailyloadshapewheretheutilityoffersapricesignalencouragingcustomerstochargelaterintheeveningwhenthereisplentyofcapacityonthesystem.

6Francfort,J.2014DOEVehicleTechnologiesOfficeReview.EVProject.IdahoNationalLaboratory.June20,2014.INL/MIS-14-31743

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To better understand the opportunity for the utility, Seattle City Light commissioned a team from across theorganizationtocarryoutatechnicalanalysisandlayoutacaseforhowtheutilityshouldpreparefortheevolvingmarket.Becausetransportationelectrificationdoesnotfitneatlyintoonesegmentofourexistingbusiness,teammembers had expertise in finance, distribution engineering, energy planning, communications, and customerservice.

Thegoalwastoanswerthreequestions:

1)Whatisthevalueoftransportationelectrificationtotheutilityandourcustomers?2)Aretherelimitationstothesystemfromanincreasedchargingload?3)WhatroleshouldCityLightplayintransportationelectrificationmarket?

TechnicalAssessment

CityLightworkedcloselywithEnergy+EnvironmentalEconomics(E3)todevelopatechnicalassessmentofthefinancial,grid,andenvironmentalimpactsofEVadoptioninourserviceterritory.Themethodologyisconsistentwith well-established practice to evaluate the cost effectiveness of energy conservation–specifically the TotalResourceCost(TRC)andtheRatepayerImpactsMeasure(RIM).ThisisheavilyinformedbytheCaliforniaElectricTransportationCoalitionElectrificationAnalysispublished in2015,with inputsandassumptions tailored toCityLight’ssystem.

Themethodologyiscenteredaroundabenefit/costmodeloftransportationelectrificationgrowthinourserviceterritoryandincludesBatteryElectricVehicles(BEVs),PluginHybridElectricVehicles(PHEVs),aswellasHeavyDutyVehicles(HDV),suchasforklifts,andbuses7.

Themodelstartswithan initialpopulationofEVsandaddsnewvehicleseachyearonvaryingadoptioncurves.Basedoninputsforavoidedcosts,vehicleperformance,chargerparameters,loadprofiles,andotherfactors,the

7Inotherplacesthroughoutthedocument,EVreferstoallplug-invehicles.

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modelcalculatesannualEVcostsandbenefitsincurredwithinCityLight’sterritory.Themodelaccountsfornon-EVloadgrowthaswell,andisthusabletoseparatedistributionupgradestriggeredbybaselinegrowthfromthoseattributabledirectlytoEVs.

INPUTSANDSCENARIOSDuetothenascentnatureoftheEVindustry,ananalysisinherentlyinvolvesatremendousamountofuncertainty.IfEVadoptionrates,chargingbehavior,cost,orothermajorparametersdonotfollowforecasts,resultswilldiffer.Scenarioanalyseshelpusunderstandwhichvariableshavethegreatestimpactonourcostandbenefitresults,aswellasprovidetherangeofpossibleoutcomes.

Thebaselinescenario(“BaseCase”)isalignedtoWashingtonState’sneartermpolicygoalof50,000EVsontheroadby2020.WeestimateaquarterofthevehiclestomeettheState’sgoalwillcomewithinourserviceterritory,upfromroughly5,000vehiclesontheroadtoday.

Ouranalysisconsistsofthebasecaseaccompaniedbysixsensitivitycases.Asshowninthetablebelow,eachofoursixcasesisdesignedtotestthesensitivityofEVimpactstokeyvariablessuchasadoptionrate,chargerprices,carbonprices,andEVchargingbehavior.Forexample,adoptionratesafter2020variedfromroughlyfrom90,000-224,000EVsinSeattleby2030.

BASECASEHIGH

ADOPTIONCASE

HIGHCHARGERCOSTCASE

CONSERVATIVECASE

HIGHGAS&CARBONCASE

MOREPUBLICCHARGERCASE

RATEBASECASE

GASPRICE($/GALLONOFGASOLINE)

EIA(referencePricecase) - - 10%lessthanbase

case

EIA(HighGasolinePrice

case)- -

CARBONPRICE($/METRICTONCO2)

35%lessthanSCL2016IRPforecast

- - -SCL2016IRPCarbonPrice - -

ADOPTIONCURVE

50,000LDVsby2020

62,500LDVsby2020;25%

increasefrombasecase

- - - - -

CHARGERCOSTS

SeeTable6inTechnicalAppendix

-

3xbasecaseforcommercialchargers;+$1000for

residentialL1andL2chargers

- - - -

VEHICLECOSTS

EVvehiclepricesdecline9%annually

- -

EVvehiclepricesdeclineat4.5%annually,½thebasecaserate

- - -

CHARGINGPATTERN

54%ofEVschargeonlyathome;46%

chargebothathomeandworkplace

- - - -AllEVscharge

bothathomeandattheworkplace

-

RATEBASESCLpaysnoneofthecharger

costs- - - - -

50%ofchargercostsaddedtoSCLratebase

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SPATIALDISTRIBUTIONOFCHARGINGAnimportantpartofaccuratelyestimatingfinancialimpactsisdevelopingamechanismthatdistributesforecastedEVsacrossthedistributiongridinarealisticmanner.WecalculatedthepercentageoftotalannualenergyloadfromeachratepayerclassoneachofCityLight’s178distributionfeeders.TheEVloadassociatedwiththatratepayerclasswasthendistributedacrossthefeedersusingthesamepercentagebreakdown.Forexample,ifafeederserved2%ofthetotalannualresidentialload,ourmodelallocated2%oftheLDVhomechargingloadtothatfeeder.

WORK HOME

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BENEFITCOSTAPPROACHThisanalysisusestwoteststoevaluatethecost-effectivenessofEVs.ThesetestsaretheTotalResourceCostTest(TRC)andtheRatepayerImpactMeasure(RIM);botharecommoninutilityresourceplanning.Thebasicprincipleofbothtests isto identifyeachsourceofcostandbenefitassociatedwithatechnology,andthencomparethesummedcoststothesummedbenefits.Ifthebenefitsexceedthecosts,thetechnologyhasapositivenetbenefitandiscost-effective.Ifthecostsexceedthebenefits,thetechnologyisnotcost-effective.

The difference between the TRC and RIM is that they perform this evaluation from different stakeholderperspectives.TheTRCmeasurescostsandbenefitsaccruedacrosstheentireeconomyduetothetechnologybeingevaluated.TheTRCthereforeincludescostspaidbytheutilityaswellasthosebornebyEVcustomers.TheRIMlooksspecificallyatutilityratepayers.ThebenefitistherevenuetheutilitybringsinfromEVcharging,whiletheonlycoststhatareconsideredarethosethatfallontheutility.

TOTALRESOURCECOSTTESTRESULTSThefigurebelowrepresentsTRCresultsfortheBaseCaseandsixsensitivities.Theseresultsaresummedacrosstheentireportfolio,soeachcaseincludesallvehicles.AllcasesassumeaTime-of-Use(TOU)rateschedulewithlowerratesduringoff-peakperiods.

TheBaseCaseproducesapositivenetTRCbenefitof$374million.Increasingadoptionby25%intheHighAdoptioncaseproducesa79%increaseinnetbenefitcomparedtothebasecase.TheHighGasandCarbonscenarioproducesthelargestnetbenefit,increasingby150%overthebasecaseto$937million.TheConservativeCase,inwhichgaspricesarereducedby10%andvehiclepricedeclinesathalftherateusedintheBaseCase,producesasmallerbutstillpositivenetbenefitof$72million.TheHighChargercostcasehasthesametotalbenefitsasthebasecasebutroughlydoublethechargercosts,reducingthenetbenefitbytwothirdscomparedtothebasecase.

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RATEPAYERIMPACTMEASURERESULTSTheRIMletsusdrilldowntoonlythecostsandbenefitsthataccruetotheutilityandourratepayers.Again,inallscenarios,thereisalargenetbenefitfromchargingandthereislessvarianceacrosseachscenariothantheTRCresults.

OfimportancetoCityLightaretheRIMresultsonapervehiclebasis,asshowninthefiguresbelow.Thisnetbenefitcanalsobeinterpretedasthemaximumper-vehiclecostthatutilitiescouldincurwhilestillmaintaininganetRIMresultofzero.Forexample,thisrevenuesurpluscouldgotowardscostsforachargingprogramorcouldhelptheutilitypayother,non-EVrelatedcosts,thusbenefitingratepayerswhodonothaveEVs.Forforkliftsandbuses,bothvehicletypeshavelargepositivenetbenefits,ordersofmagnitudelargerthantheLDVper-vehiclenetbenefits.Whilebusesandforkliftsaremoreexpensivevehicles,theirnetbenefitisproportionatelylargerthanpassengervehiclesduetheirhigherrelativeuse.Forexample,anaveragecardrives30milesaday,whileabuscandrivehundredsofmilesdaily.

GREENHOUSEGASEMISSIONS(GHG)GHG emission reductions and improved air quality are among the primary motivations for transportationelectrification.ElectricvehiclespoweredbyCityLight’scarbonneutralelectricitycanbeassumedtohavezeroGHGemissions.CityLightispoweredprimarilybyhydrogeneration,andplanstomeetallfutureenergydemandwithconservationandrenewableenergy.ToachievecarbonneutralityandGHGneutralpowerforitscustomers,CityLightvoluntarilymitigatesitssmallshareofGHGemissions,includingoperationsandpowerpurchases,withGHGoffsets. Thismeans that GHG emissions are reduced by 100% for City Light powered EVs, comparedwith gaspoweredvehicles.

IntheHighAdoptionuse,thiscouldpreventreleaseofapproximately351,500metrictonsofannualGHGemissionsbyyear2030,yieldingatotalGHGreductionofover3.5millionmetrictonsoverthelifetimeoftheprogram.Thisassumeseachvehiclehasa lifetimeoftenyears.Adoptionofelectricvehicleswillalsopreventreleaseofmanyotherharmfulandhazardoustailpipeemissions,leadingtolesslocalairpollutioninCityLight’sserviceterritory,makingSeattleahealthierplacetolive.

Whiletheenvironmentalbenefitsofelectrificationareclear,thecostofgreenhousegasoffsetsisnotakeyfinancialdriverinacost-benefitelectrificationanalysis.Comparedwithoffsetcosts,otherfinancialssuchas;gasolineprices,technologycosts,andcharginginfrastructurecostsarefarmoreimpactfultothefinancialanalysis.

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GENERATIONIMPACTSProjectedEVadoptionwilladdadditionalelectric load thatCityLightmustservewith itsgenerationresources.However,webelievetheseloadscanbehandledlargelybyourexistingportfolio.Inthebasecase,weexpectEVstoaddarelativelymodest38aMWofloadperyearby2030,muchofwhichwillbeoffsetbyincreasesinbuildingefficiency.

DISTRIBUTIONIMPACTSOneofthemostpromisingfindingsofthisanalysisisthatEVadoptionatthebaseorhighadoptionratesisveryunlikely to incurprohibitivedistribution costs forCity Light.Despite the fluctuations across rate schedules andadoptionrates,transmissionanddistribution(T&D)costsmakeupaverysmallpercentageofoverallutilitycosts.Forbothadoptionscenarios,T&Dcostsaccountfor2-3%ofutilitycostsundertheTOUrateand9%undertheflatrate,asshowninthetablebelow.AnypotentialenergyandcapacitycoststheutilitywillincurtoservefutureEVloadwillbemuchlargerthantheT&Dcosts.Overall,ourresultssuggestthatEVadoptioninCityLight’sserviceterritoryishighlyunlikelytorequirewidespreadupgradestothedistributiongrid.

SCENARIO RATESCHEDULE TRANSMISSION&DISTRIBUTIONCOSTS(MILLION$2015)

PERCENTOFUTILITYRIMCOSTS*

BaseCase TOU $3,404,856 2.7%

BaseCase Flat $14,658,792 8.9%

HighAdoption TOU $4,768,961 2.3%

HighAdoption Flat $24,157,165 8.8%*RIMcostsincludeenergy,capacity,transmissionanddistribution,RPScompliance,andcarbonemissionsfromelectricitygeneration.

ApartialexplanationforwhyT&DcostsaresolowistheamountofavailablecapacityalreadyexistingonCityLight’s26kVdistributionsystem.Roughly80%of feederscanaddat least552LDVchargersor8buschargersbeforeneedingacapacityupgrade.Thisisrelativetoapproximately2,500customersonanaverageresidentialfeeder.ThehighamountofavailablecapacityontheCityLightdistributiongridwillbeabletoabsorbasignificantportionofthenewEVchargingload,sodistributionupgradeswilllikelyberestrictedtoareaswithanunusuallyhighEVdensityorwherehighEVdensitycoincideswithrapidlyincreasingnon-EVload.

ProgramRoadmap

Fromourteam’swork,weseeaconsistentnetbenefitfortransportationelectrificationinourserviceterritory.ThisistrueforEVs,busesandnon-roadtransportationfrombothautilityandwidereconomicperspective.Similarly,analysisshowsthatourdistributionsystemhascapacitytosupportlarge-scaleEVadoptionatlowadditionalcost.

Havingansweredourinitialquestions,weseeCityLightplayinganessentialroleinthesuccessoftransportationelectrification in Seattle. As a publicly owned electric utility, we support customer-driven programs that areconsistentwithourutilitypurposeofprovidingaffordable,reliableandsustainablepower.

Ourprogramswillfocusonincreasingtheavailabilityofelectricvehiclecharging.Thiswillallowfurtheraccesstocarbon-neutralelectricitythatcustomersaredemanding,betterutilizecurrentutilityassetsandcontributetotheaggressivegoalsof theDriveCleanSeattle Initiative.Overthenextyear,wewill implementtwopilotprograms

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focusedonpublic stations and residential charging. In addition,wewill support fleet and transit electrificationthroughtechnicalassistanceandtechnologydemonstrationprojects.

DCFASTCHARGINGPILOTCityLightwillconstruct20publicDCfastchargingstationsat10-15siteswithinourserviceterritory,whichwilltripletheiravailability.ThesestationsallowEVstochargemostoftheirbatterypackinquick30minutesessionsateitherCity-ownedpropertyorprivatesites.ThestationswillbecompatiblewithallavailableEVmodelsthataredesigned to accept fast charging. City Light will own and install the charging infrastructure, and will charge areasonablefeefortheiruse.

Procurement,designandsiteselectionwillprogressthrough2017,andthefirststationswillbeinoperationbytheendoftheyear.Thesiteswillbehighlyvisibleandeasy-to-accesslocations.ThevisibilityiskeytoshowCityLight’scommitmenttothetechnology,raisingconsumerawarenessaboutEVs,andalsoimprovingchargingavailabilityforresidentswithlimitedparkingandsharedusedmobilityapplications.

RESIDENTIALCHARGINGPILOTInadditiontopubliccharging,CityLightwillhelpinstallatleast200LevelIIstationsincustomers’homes.Thesestationswillfacilitatedatacollectionaboutlocationandusage,andallowustobetterunderstandinmoredetailthe impact to our distribution system. For the customer, itwill lower the initial cost and uncertainlywith thetechnology.

Initially,theprogramdesignwillbebasedontheutilityowningthechargingstationandthecustomerwillhaveamanageablepaymentontheirelectricitybill.WithadditionalauthorityfromtheState,theprogramdesignmightshift toa customer incentive.Weare still determiningeligibilityand if theprogramwillbe targetedbymarketsector,butitisscheduledtolaunchbytheendof2017.

ELECTRICFLEETSFleets,both largeandsmall,areaperfectopportunity toelectrifyvehicles thatsee regularandconsistentuse.However,theprimarychallengeinfleetelectrificationistheenormousquantityofcharginginfrastructurerequired,oftenatasinglelocation.

Toaddresstheseissues,CityLightiscommittedtobetterunderstandingbestpracticesandlowestcostmeanstosupportwidespreadfleetelectrification.Specifically,theSeaParkGarageEVChargingInfrastructureDemonstration,inpartnershipwithEPRI,will testa rangeofcharging technologieson theCity’s fleetvehicles.There isagreatdegree of variation in charging design, from simple charge stations that provide no external control orcommunicationstoadvancedunitsthataresupportedbyremotedatacollection,userauthenticationandcontrolcapabilities.ThisprojectwillhelpCityLightunderstandwaystoleveragemanagedchargingtechnologytomitigateutilityandcustomerinfrastructureupgrades.

TRANSITAll-batteryelectricbusesareanascentbutgrowingsegmentofthetransitmarket.KingCountyMetrohasacquiredthreeall-electricbuses,andhascommittedtohaving120inserviceby2020.Sucharapiddeploymentwillrequirea significant expansion in charging infrastructure, which will likely be located at a Seattle base. City Light willproactivelyworkwithMetrotoprovidetechnicalsupportandaddresselectricserviceopportunities.Wewilldesign

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astrategythatmakesthemostsenseforbothorganizations–addressingMetro’sneedforflexibilityinthefutureandCityLight’sabilitytooptimizetheloadonourdistributionnetwork.

PENDINGLEGISLATIONWhiletheseprogramswillleverageutilityownershipandourtechnicalexpertise,wealsobelievethereisaroleforCity Light toencourageprivatedevelopmentof charging infrastructure.However,we lack the authority touseratepayerdollarsforthispurpose.Specifically,underArticleVIIIoftheWashingtonStateConstitution,incentivesoranyotherpaymentforprivatelyownedcharging infrastructurecurrentlycouldbeconsideredagiftofpublicfunds.

In parallel to program development, City Light will also pursue legislative authority for more flexibility in ourprogram design.We are closely followingHouse Bill 1335 in the current special session,whichwould provideauthority for using ratepayer funding to support private charging stations. This could affect program design,specificallyonresidentialandtransitopportunities.

SDOTOpportunitiesThe Seattle Department of Transportation (SDOT) is committed to helping the City achieve its climate goals,includingtheDriveCleanSeattleinitiative’sobjectivetoachieve30%ofallvehiclesbeingelectricby2030.Achievingthis goalwill requireamixtureofpolicy changes,procurement changes, infrastructure investment, andpublic-privatepartnerships.SDOT’sapproachistoenabletheexpansionofthesupplyofcharginginfrastructurecitywide(particularlyinthepublicright-of-way)andpromotetheexpansionofthesupplyofelectricvehiclesusedforsharedmobilityserviceslikefree-floatingcarshare,one-waycarshare,TNC-basedridesourcingandridesplittingservices,andothertaxiandfor-hireservices.

The following implementation strategies represent near-term and long-term opportunities that would expandaccesstochargingforpeoplewhodonothaveaccesstoaprivategaragewithparticularemphasisonoptimizingtheuseoflimitedEVchargingforsharedmobility.

AdvanceElectricSharedMobilityandEVSESupplyatSharedMobilityHubs

The Seattle Department of Transportation recently developed a Shared Mobility Hub program to aggregatetransportation connections and travel information into a seamless, understandable, and on-demand travelexperience.SDOTplanstocreateadensenetworkofsharedmobilityhubsthroughoutthecity,oftenco-locatedwithmajor transit facilities and in placeswhere frequent transit services intersect. A key objective for sharedmobilityhubsistoadvancetheuseofelectriccarshareandridesourcingvehiclesbyaccommodatingfastchargingatorverynearhublocations.

Strategicallysitingfastcharginginfrastructureatmajortransitconnectionswilltapintomultiplebenefits,including:

• Improvingaccesstotransit,particularlyinareaswithpoorfirstmile/lastmileconnections• Encouragingsharedmobilityserviceprovidersandtransportationnetworkcompanydriverstoinvestin

EVs• Expandingthesupplyofcleantransportationvehicles• Exchangingrelianceonprivately-ownedvehicleswithmoredemandforsharedEVfleetvehicles

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Tofunnelchargingstationinvestmentatsharedmobilityhubs,SDOTwillimplementthefollowingoverthenexttwoyears:

• DevelopstrategytofacilitateuseofelectrictransportationatSharedMobilityHubs,focusingondemand,supplyneedsovertime,andimplementationpriorities

• Workwithelectriccharginginfrastructureproviderstotargetinvestmentsatsharedmobilityhubs• CoordinatewithSoundTransitandKingCountyMetrotositecharginginfrastructureontransitproperty

DevelopaNetworkofOff-streetSharedEVSEClusters

ManyneighborhoodsinSeattlehavelanduseswithcommercialorinstitutionalsurfaceparkinglotsandstructuresthatareusedintenselyduringweekdaybusinesshoursbutunderutilizedthroughthenight.Manyparkingfacilitiesaresparselyusedorvacantfrom7:00p.m.–7:00a.m.,creatingopportunitiestorenttheemptyparkingspotstoresidents interested inaccess tocharging.Thisstrategyrequires the following implementationactionsover thenexttwoyears:

• BeginapartnershipandcollaborationwithSeattleDepartmentofConstructionandInspectionstoimplementthisstrategy

• Developanoff-streetEVchargingclusterplantodeterminephasedsupplyforlease-basedEVcharging• Developaleaseagreementtemplateforcommercialpropertyownerstoexecuteshareduseleasesfor

overnightEVstorageandcharging• StudythefeasibilityandorganizationalstructuresforasharedEVSEparkingbrokerage(eitherpublicly

managedorinpartnershipwithoneormoreprivateappdevelopers)

EV-ReadyCodesCodesandregulationsare important tools toencouragethe installationofelectricvehiclechargingequipment.RecentcodechangesinSeattlehavehelpedsupportEVcharging.OurLandUseCodewasamendedin2011toallowchargingdevicesinyardsinsingle-familyzones.Inaddition,thedefinitionof“retailsalesandservices,automotive”wasclarifiedtoallowbatteryexchangestationsforelectricvehiclestobeincludedamongautomotiveretailsalesandserviceusesallowedincommercialzones.Finally,thedefinitionof“principaluseparking”wasclarifiedsothatbattery charging stations and rapid charging stations for electric vehicles are considered accessory to parkingfacilities.Thelandusecodepresentanopportunitytorequiretheelectrificationofparkingspaces.Forexample,San Francisco recently adopted a 100% EV Ready ordinance requiring parking spaces in new residential andcommercialbuildings.

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CodeChangestoSupportEVCharging

RELEVANTCODES CODECHANGESTOEXPLORE

LandUseCode/ZoningTitle23oftheSeattleMunicipalCode(SMC)

AddrequirementstoprovideEVchargingand/ortheelectricalinfrastructureneededtosupportspecificlevelsofcharginginthefuture.

ResidentialCodeSMCTitle22

Includereferencestothenewlandusecoderequirements.

ElectricalCodeSeattleamendmentstothe2014editionoftheNationalElectricalCodeadoptedbyOrdinance:124593

Thiscodecurrentlyincludeselectriccapacityrequirementsfortheneededlevelofcharginginfrastructure,whichwouldbedeterminedbythelandusecode.Referenceswouldbeincludedtothenewlandusecoderequirements.

PriorityGreenExpeditedVoluntaryprogramtoshortenthetimetogetanewconstructionpermitinexchangeformeetingagreenbuildingrating

ExploreaddingprojectsthatexceedthenewlandusecoderequirementsforEVchargingtobeeligibleforPriorityGreen.Projectswouldalsoneedtomeetagreenbuildingratingincluding:BuiltGreen®4-Star,5-Star,orEmeraldStar;orLeadershipinEnergyandEnvironmentalDesign™(LEED)®goldorplatinum.

RACIAL EQUITY ANALYSIS

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2016RacialEquityToolkitAraceandsocial justice lens isessentialtoensurethebenefitsoftransportationelectrificationaccruetothosemostimpactedbythenegativeeffectsofafossilfuelbasedtransportationsystemandtoensuretransportationelectrificationstrategiesdonotexacerbateexistinginequities.AnimportantgoaloftheDriveCleanSeattleinitiative(DCS)istomaximizeairquality,cost-savings,andotherbenefitsofelectrictransportationforcommunitiesofcolor.In2016,theOfficeofSustainabilityandEnvironmentcompletedaRacialEquityToolkit(RET)fortheDriveCleanSeattleinitiative.

TheSeattleEquity&EnvironmentAgendaservedasthefoundationforthedevelopmentofracialequityoutcomes,whichwererefinedwithinputfromtheCommunityPartnersSteeringCommittee.

DriveCleanSeattleRacialEquityOutcomes

1. ImproveairqualityintheplaceswhereEEIcommunitieslive,learn,workandplay.2. BringeconomicbenefittoEEIcommunitiesthroughanincreaseingreentransportationjobsanda

decreaseintransportationcosts.3. EEIcommunitieshaveequitableaccess,accountability,anddecision-makingpowerinDriveCleanSeattle.4. HighlightthecleantransportationstoriesandexperiencesofEEIcommunities.

DriveCleanSeattleprogramhasbeencollaboratingwiththeEquity&EnvironmentInitiative(EEI)toidentifyactionstoadvancethesegoals.DriveCleanSeattleandEEIstaffcollaboratedtohostaworkshopwiththeEEICommunityPartnersSteeringCommittee.whichresultedin:

• Sharedgoals,identifiedexistingconnectedwork,identifiedandsharedcreativeandunusualideastoadvancetheEquity&EnvironmentAgenda.

• Surfacedbarriers,assumptions,andquestionsregardingparticipationinDCSfromcommunitiesofcolor.• Begantoestablishacollaborativerelationshipwithcommunityleaders.

DriveCleanSeattleseekstodeveloppoliciesandmakeinvestmentswhichcenterenvironmentaljustice.Reducingtransportation pollution is an important environmental justice strategy because the environmental benefits ofelectrictransportationsuchasbetterairquality,decreasedclimatepollution,and lessstormwaterpollutionalladdressenvironmentalhazardswhichdisproportionatelyaffectcommunitiesofcolor.Further,byelectrifyingthetransportation sector, theCity is creatinga less costlyandmoreconvenient transportationexperience.Electrictransportationprovidessignificantpotentialeconomicbenefitsforcommunitiesofcolorsuchasgreenjobsincleantransportationorinrelatedelectricalworkandmoremoneycirculatinginlocaleconomiesasfueldollarsarekeptat home. However, there is real concern that, without a diverse set of policies in place, simply increasing EVinfrastructure in communities could increase rents or other cost of living indicators and increase risks ofdisplacementandgentrification.

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2017RaceandSocialJusticeStrategiesBuildingontheworkin2016,theDriveCleanSeattleteammetwiththeEnvironmentalJusticeCommitteeearlyin2017.ContinuingtobuildthispartnershipwillhelpdeliverontheracialequityoutcomesestablishedaspartoftheRET.Importantracialequityimplementationactionsfor2017include:

• Utilizecreative,culturallyrelevantstrategiesandfostercommunitycohesionbyconnectingEVandtransportationprogramstoculturalanchors,suchascommunitycenters,churches,andserviceproviders.Initialideasincludelocatingchargerstoservethesefacilities,providemapstolocalservicesatchargingstations,creatinginterpretativesignageaboutelectricvehicles,engaginglocalyouthincreatingartforthechargingstations.

• EngagecommunitytolearnhowincreasingEVinfrastructuremayundulyburdenEEIpopulationsandhaveunintendedconsequencesarounddisplacementandgentrification.Workwithcommunityandstakeholderstoidentifyandmitigateunintendedconsequencessuchasimpactstoparkingforlocalbusinesses,increasedpropertyvalues,andchangesintypesofjobsneededtoserviceelectricvehicles.

• Partnerdirectlywithcommunity-basedorganizations,workinclosecollaborationwiththeEEI,andbuildpartnershipswithserviceindustryanchorstodevelopasuiteofpolicyandprogramactionswhichwillworkintandemtoaddressracialequityintransportationelectrification.EarlyideasbrainstormedbytheEnvironmentalJusticeCommitteeincludedevelopingjobtrainingprograms,providinginterpretativesignageatchargingstationsdescribingthebenefitsofelectricvehicles,andcollaboratingwithlocalcommunityserviceproviderstouseelectricvehicles.WewillcontinuetoexploretheideasincollaborationwiththeCommittee.

• AssistinanyracialequityanalysesformajorprojectswithinDriveCleanSeattlebyprovidingdataandcoordinatingstakeholderengagementwiththeEnvironmentalJusticeCommitteeandothers.ThiswillhelpprojecttoolkitshaveintegratedoutcomesthatflowfromtheDCStoolkitsimilartohowtheDCSoutcomeswerecoordinatedextensionsoftheEquity&EnvironmentAgenda.

CONCLUSION

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Tomeetourcarbonneutralitygoals, it iscriticalthatweelectrifythetransportationsector.Lightdutyvehicles,whetherowned,shared,autonomous,orpartofafleet,willremainanimportantcomponentofthetransportationsystem.Therefore,theCitysetagoaltoincreaseelectriclightdutyvehicleownershipto30%by2030.Tomeetthisgoal andbroaderelectrificationgoals,MayorMurray launched theDriveCleanSeattle Initiative to significantlyexpandourworktoelectrifythetransportationsectoratscaleandtoputusonthepathtocarbonneutrality.

The experienceof citieswith thehighest rates of EV adoptiondemonstrates that local government canplay asignificantroleinacceleratingthetransitiontoelectrictransportationbyaddressingthemostsignificantbarrierstoEVadoption.Seattleisdeployingacomprehensivesuiteofstrategiesthataddressthebarriersofcost,chargingconvenience, and consumer awarenesswhile centering environmental justice. Following the example of otherleading cities and thinking about our unique set of circumstances and characteristics, Seattle’s electrificationstrategiesarebeingdesignedto:

• Becoordinatedandcomprehensiveandfeatureadiversesetofstakeholders.• Leveragetechnologytoadvancethegoalsofashared,clean,andequitabletransportationsystem.• Ensurethebenefitsofacleantransportationsystemaccruetothosemostimpactedbytheairpollution

ofthecurrentsystem.• Facilitatinggreateraccesstochargingandprioritizepubliclyavailablecharginginwayswhichenable

sharedmobility,fleetelectrification,andotherpolicygoals.• Increaseconsumerexposuretoelectricvehiclesandawarenessaboutthebenefitsofelectrification

throughsustainedprogramsandoutreachactivities.• ElectrifytheCity’smunicipalfleettoleadbyexampleanddemonstratebestpractices.

As laboratories for innovation, citiesarewhere the futurehappens first.And,as the levelofgovernmentmostcloselyconnectedtopeople’sdailylives,citieshaveuniqueopportunitiestoimproveairqualityandpublichealth,advanceenvironmental justice,andreducetheeconomicrisksof fossil fueldependenceandworseningclimatechange through policies and programs which support electric vehicles. Seattle’s goals are bold, and ourcommunities’innovativespiritandcommitmenttoenvironmentalqualityforallpositionsustomeetthechallengeinwaysthatyieldenvironmental,communityandeconomicgoals.

WWW.SEATTLE.GOV/ENVIRONMENT