Electrification Coalition Launches Roadmap
Posted November 17, 2009 at 8:22 am 
Filed in: Economic Security, Electric Utilities, Electrification, National Security, Oil Dependence, Transportation Yesterday, more than a dozen business leaders representing companies throughout the electric vehicle value chain came together for the launch of the Electrification Roadmap, a sweeping report detailing the dangers of oil dependence, explaining the benefits of electrification, describing the challenges facing electric cars, and providing specific policy proposals to overcome those challenges.
Fred Smith, Chairman, President and CEO of FedEx Corporation, said that “It is time for business leaders and policymakers alike to step up. Our unrelenting dependence on oil has threatened our nation for too long. Up to now, electrification seemed like a pipe dream. But we are offering a realistic, practical, achievable plan to build a transportation system that will enhance our national security, propel economic growth, and reduce carbon dioxide emissions.”
The Electrification Roadmap, as the Wall Street Journal reported, has a bold and specific vision: By 2040, 75 percent of light-duty vehicle miles traveled in the United States should be electric miles. This will reduce oil consumption in the light-duty fleet by more than 75 percent, reducing oil consumption by light-duty vehicles from a forecast 8.2 million barrels a day to just 2 million barrels a day.
During the panel, moderated by Pulitzer Prize winning author and columnist Tom Friedman, members of the Electrification Coalition including Carlos Ghosn, President and CEO of Nissan Motor Company, David P. Vieau, President and CEO of A123 Systems, Inc., and Peter L. Corsell, CEO of GridPoint, Inc., responded to questions from the audience around the availability of clean power, and the challenges of existing battery technology. David W. Crane, President and CEO of NRG Energy, emphasized that “It is absolutely crucial that all of the key elements of an electrified transportation system are introduced in a highly coordinated fashion and in a way that is effective, affordable, and appealing to actual American consumers.” Representative Edward Markey (D-MA), Federal Energy Regulatory Commission Chairman Jon Wellinghoff, Chair of the White House Council on Environmental Quality Nancy Sutley, and Senator Byron L. Dorgan (D-ND) also contributed to the debate, stressing both the need for and challenges inherent in electric vehicle legislation and regulation.
The Electrification Roadmap calls on Congress to:
- Establish tax credits for installing automotive grade batteries in stationary applications;
- Establish loan guarantees for retooling automotive assembly lines;
- Modify building codes to promote GEV adoption;
- Promote inclusion of GEV-related investment in utility rate base and adjust rates to facilitate GEV deployment; and
- Establish a guaranteed residual value for batteries in order to facilitate innovative business models, such as battery financing, which will offset the upfront costs to GEV consumers.
To promote rapid deployment of GEVs, the federal government should undertake an ambitious initiative to establish electrification ecosystems in several cities. These ecosystems will provide an invaluable demonstration of the benefits of integrated electrification architecture and serve as a springboard to widespread deployment. In the three-year long Phase One, between 50,000 and 100,000 GEVs should be deployed in each of five to seven competitively chosen ecosystems in order to: 1) demonstrate the benefits of GEVs in a real world environment; 2) facilitate learning about GEVs needs and operations; and 3) take advantage of economies of scale in infrastructure deployment. In the five-year long Phase Two, 20 to 25 competitively chosen ecosystems will use lessons learned in Phase One to further spearhead GEV deployment, with federal assistance at reduced levels to account for declining costs over time. At the end of Phase Two, more than 7 million GEVs should be on the road, placing the nation well on the path to a more secure and cleaner energy future.
Though the price tag of over $120 billion seems hefty, Sam Ori, SAFE Director of Policy and an author of the report, pointed out in the Washington Post (which also published this Associated Press article) that it “pales in comparison to the cost of U.S. oil dependence, which has huge environmental, economic and national-security costs.”
Today, President Barack Obama and Chinese President Hu Jintao announced the launch of a U.S.-China Electric Vehicles Initiative. A key component is joint demonstrations, which will link more than a dozen cities with electric vehicle demonstration programs in both countries. Paired cities will collect and share data on charging patterns, driving experiences, grid integration, consumer preferences and other topics. The demonstrations will help facilitate large-scale introduction of electric vehicle technology.
Below are two figures from the Electrification Roadmap.
For more details, visit the Electrification Coalition website.
To help overcome these challenges, Congress should:
· Establish tax credits for installing automotive grade batteries in stationary applications;
· Establish loan guarantees for retooling automotive assembly lines;
· Modify building codes to promote GEV adoption;
· Promote inclusion of GEV-related investment in utility rate base and adjust rates to facilitate GEV deployment; and
· Establish a guaranteed residual value for batteries in order to facilitate innovative business models, such as battery financing, which will offset the upfront costs to GEV consumers.
To promote rapid deployment of GEVs, the federal government should undertake an ambitious initiative to establish electrification ecosystems in several cities. These ecosystems will provide an invaluable demonstration of the benefits of integrated electrification architecture and serve as a springboard to widespread deployment. In the three-year long Phase One, between 50,000 and 100,000 GEVs should be deployed in each of five to seven competitively chosen ecosystems in order to: 1) demonstrate the benefits of GEVs in a real world environment; 2) facilitate learning about GEVs needs and operations; and 3) take advantage of economies of scale in infrastructure deployment. Ecosystems will receive tax credits for GEV vehicle purchases, infrastructure deployment and necessary utility upgrades. In the five-year long Phase Two, 20 to 25 competitively chosen ecosystems will use lessons learned in Phase One to further spearhead GEV deployment, with federal assistance at reduced levels to account for declining costs over time. At the end of Phase Two, more than 7 million GEVs should be on the road, placing the nation well on the path to a more secure and cleaner energy future.
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