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November 30, 2015

Electric vehicle sales surge needed to keep pace with requirements

SAM BONACCI Proposed state regulations would require Massachusetts to accelerate its embrace of electric vehicles such as those seen here at an electric vehicle event at WPI.

Zero-emission vehicles and plug-in hybrid vehicles will likely make up more than 15 percent of vehicle sales by 2025, under proposed state regulations that would require Massachusetts to accelerate its embrace of electric vehicles.

In addition to a public hearing set for Tuesday, the state Department of Environmental Protection is accepting written comments until Friday on regulatory amendments that adopt revisions to the California ZEV standard requirements for passenger cars and light-duty trucks.

The revisions are designed to keep up with developments in battery electric, plug-in hybrid, and hydrogen technologies.

While adoption of electric vehicles by consumers hinges on vehicle pricing, charging infrastructure and public attitudes, the standards aim to provide automakers with a common framework to advance the commercialization of zero-emission technologies aimed at reducing emissions from the transportation sector and helping the state to meet air quality goals laid out under the 2008 Massachusetts Global Warming Solutions Act.

"We want to get these regulations done hopefully by the end of the year," Nancy Seidman, assistant commissioner at the state Department of Environmental Protection, told the News Service in a recent interview. "It's in line with our efforts to reduce greenhouse gas emissions."

Massachusetts has a long way to go before it hits the 15 percent mark. According to Seidman, there are only about 5,000 electric vehicles in the state currently, or less than 1 percent.

"There's been a lot of progress in electric vehicles even in the last two years," she said. "We're expecting big things and we're working hard to get there."

In October 2013, former Gov. Deval Patrick signed a memorandum of understanding (MOU) with seven other governors to increase the number of clean energy vehicles. The target is 3.3 million electric vehicles on the road by 2025, and Massachusetts' portion is 300,000.

The six Northeast and mid-Atlantic states participating in the MOU account for 50 percent of the goal of 3.3 million vehicles by 2025, with the remaining 50 percent allocated to California and Oregon, according to a "Charging Up" report released in October by the Conservation Law Foundation (CLF). The report estimated there are only 31,834 zero-emission vehicles as of August 2015 in the Northeast and mid-Atlantic region, including MOU states and non-MOU states.

CLF and groups like the Union of Concerned Scientists, TechNet and the American Lung Association are behind a proposal calling on the state Department of Public Utilities to direct utilities to submit proposals for installation of electric vehicle charging infrastructure. The groups also want broader consideration of electric vehicles in the grid modernization plans for electric distribution companies.

Researchers found Massachusetts has many of the recommended electric vehicle programs in place, but does not have policies in place for HOV lane access, toll and fee waivers, and preferential parking.

The report credited Massachusetts with offering a rebate of up to $2,500 for electronic vehicle purchases and leases of at least 36 months, and said that Massachusetts covers 50 percent (up to $25,000) of hardware costs to employers installing certain charging stations, with more than 200 workplaces approved for such grants to date.

The "Charging Up" report recommended auto dealership and consumer incentive programs to promote electric vehicles, policies that lead to broader availability of charging stations, public education initiatives, and the "lead by example" use of such vehicles in municipal and statewide fleets.

According to the state's draft ZEV action plan, there are currently 25 plug-in electric vehicle models from 14 manufacturers that are available for sale or lease in the U.S. with 12 models running on only electricity, 13 that are plug-in hybrid electric vehicles and three that are fuel cell electric vehicles.

By law, the DEP is required to adopt and implement California motor vehicle emission standards as long as those standards are at least as protective as the federal standards. There are no federal ZEV requirements, according to DEP, so Massachusetts must adopt the regulations "so they continue to be identical to California's." The California Air Resources Board adopted the ZEV requirements in 1990 and has modified them several times since then.

Massachusetts agreed to embrace the California standards when Gov. William Weld was in office, and Seidman said the regulations keep the state up to date with changes in California's program and provide industry officials with information they need to design new vehicle fleets.

DEP officials see the potential for ancillary benefits from an increase in zero-emission vehicles, including incentives for companies that provide parts or service for such vehicles to move to Massachusetts or expand here.

"Given the cutting-edge nature of the vehicle technologies and the prevalence of technology programs at Massachusetts universities, start-up ventures could also be created to benefit from the requirement for ZEV and advanced technology vehicles," DEP officials wrote in a 12-page document explaining the pending regulations.

While noting the extensive advertising by auto makers and dealers, the "Charging Up" report said, "While in some ways EVs are just regular cars, in other ways they are a new technology. Many shoppers report knowing more about EVs than the dealers they consult. In a 2014 investigation, Consumer Reports dispatched 19 mystery shoppers to 85 dealers across four states, and they found many dealers knew little about the EVs they sold. In some cases, dealers outright discouraged EV purchases."

In October 2014, then-Undersecretary for Environment Martin Suuberg visited Marlboro Nissan, the dealer that sold the most electric vehicles eligible for the Department of Energy Resources' Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program. Suuberg, who was tapped by the Baker administration as Department of Environmental Protection commissioner, also co-hosted an event in Wellesley celebrating John Hancock management's application for funding to install 16 charging stations through the Massachusetts Electric Vehicle Incentive Program Workplace Charging Program.

The Massachusetts Zero Emission Vehicle Commission is guiding efforts for the state. According to minutes from the commission's Aug. 31 meeting, the commission identified auto dealers as a "key" to more widespread adoption of electric vehicles and concluded that "there is no plan to motivate and increase enthusiasm for sales." This month, the commission weighed the idea of providing training opportunities to encourage "dealer innovators" and recognizing EV sales success stories.

The commission in August also proposed that the Executive Office of Energy and Environmental Affairs convene small group discussion for the ZEV Commission "to identify legislative needs or miss an opportunity - do this while finalizing action plan." The minutes also reference a "suggestion that this should include long term funding and direction for utilities to participate."

The Dec. 1 hearing will be held at 1 p.m. at DEP offices in Boston.

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