Colorados Vision for Electrification 2018 CASTA Spring Training

Colorado’s Vision for Electrification 2018 CASTA Spring Training Conference Christian Williss, Director, Transportation Fuels and Technology May 17, 2018

Electric Vehicle Model Availability Source: Bloomberg New Energy Finance

Transportation Fuels and Technology CEO’s Transportation Fuels and Technology Team works to accelerate adoption of alternative fuel vehicles through: 1. Policy and Planning – make Colorado an attractive place to own and operate an alternative fuel vehicle (AFV) and make investments in AFV fueling and charging infrastructure. 2. Program Management – administer grant programs that reduce the upfront cost of installing fueling and charging infrastructure. 3. Outreach and Education – provide information and technical support to fleets and consumers on the costs and benefits of owning and operating AFVs and investing in infrastructure.

Benefits of Alternative Fuel Vehicles

Benefits of Alternative Fuel Vehicles Source: SWEEP

Benefits of Alternative Fuel Vehicles

Benefits of Alternative Fuel Vehicles Source: Environmental Entrepreneurs (E 2)

Barriers to Electric Vehicle Adoption The State of Colorado focuses on 3 primary barriers to electric vehicle (EV) adoption: 1. Lack of information on the costs, benefits, and availability of EVs (and infrastructure). 2. High upfront cost (and availability/assignability of grants and other incentives). 3. Lack of (publicly-accessible) Level II and DC Fast-Charging infrastructure.

Charge Ahead Colorado • Partnership between CEO and Regional Air Quality Council. • Grants for communitybased Level II and DC fastcharging stations across the state. • Grants for EVs in 7 -county metro area (public/nonprofit fleet owners).

ALT Fuels Colorado • Partnership between CEO and Regional Air Quality Council. • Grants for AFV fueling and charging stations across the state. • Grants for AFVs in non-attainment, CO maintenance areas.

Refuel Colorado https: //www. Colorado. gov/energyoffice/refuel-coaching

Regional Electric Vehicle West (REV West) • Signed by 8 Western Governors • Establishes a framework for collaboration on an Intermountain West Electric Corridor. • Develop best practices/voluntary minimum standards for stations, expand access to new EVs, and create consistent charging experience.

Colorado’s Beneficiary Mitigation Plan Eligible Project Types • Class 8 (large) local freight and port drayage trucks • Airport ground support equipment • Class 4 -7 (medium) local freight trucks • Heavy forklifts • Class 4 -8 school, shuttle, or transit buses • Up to 15% for light duty ZEV supply equipment • Railroad freight switchers • Certain boats & port equipment • Diesel emission reduction act (DERA) option • Admin costs up to 15%

Colorado’s Beneficiary Mitigation Plan • Proposes 15%, maximum allowed, for Zero Emission Supply Equipment Program - $10. 3 million. • Distributed through existing grant programs – Charge Ahead Colorado and ALT Fuels Colorado. • $3. 5 million for communitybased Level II and DC fastcharging stations. • $6. 8 million for DC fastcharging stations along Colorado’s major transportation corridors.

Executive Order D 2017 -015 Supporting Colorado’s Clean Energy Transition 1. Reduce greenhouse gas emissions statewide by more than 26% by 2025, as compared to 2005 levels. 2. A 25 percent reduction in carbon dioxide emissions from the electricity sector by 2025, as compared to 2012 levels. 3. A 35 percent reduction in carbon dioxide emissions from the electricity sector by 2030, as compared to 2012 levels. 4. Achieve electricity savings of 2% of total electricity sales per year by 2020 through cost-effective energy efficiency.

Executive Order D 2017 -015 Supporting Colorado’s Clean Energy Transition The Colorado Energy Office, the Regional Air Quality Council, and the Colorado Department of Public Health and the Environment are directed to develop, in coordination with other state agencies and in alignment with the Volkswagen Mitigation Trust, a statewide Electric Vehicle plan by January 1, 2018 to build out key charging corridors that will facilitate economic development and boost tourism across the state while reducing harmful air pollution.

Colorado Electric Vehicle Plan • Build out key charging corridors that facilitate economic development, boost tourism, and reduce harmful air pollution. • Accelerate adoption of EVs and ensure Colorado remains a leader in the EV market. • Serve as a living document.

EV Fast-Charging Corridors Action #1: Build out Colorado’s EV fastcharging infrastructure through publicprivate partnerships and in coordination with other programs and funding sources. Strategy 1: In first quarter 2018, CEO will modify its ALT Fuels Colorado program and provide grants to public and private entities to build EV fast-charging corridor stations. Action #3: Develop new strategic partnerships that support greater investment in EV fast-charging and increase utilization of charging infrastructure.

EV Fast-Charging Corridors Action #2: Support interstate EV travel and a consistent user experience across the Intermountain West. Action #3: Develop new strategic partnerships that support greater investment in EV fastcharging and increase utilization of charging infrastructure. Action #5: Leverage the benefits associated with adoption of EVs by encouraging creative partnerships, increased access, and new infrastructure that support and complement the build-out of Colorado’s EV fast-charging network.

Accelerating EV Adoption Goal #1: Increase adoption of EVs in the light duty sector by taking steps to achieve the high growth scenario of approximately 940, 000 EVs in Colorado by 2030, as projected in the Colorado EV Market Implementation Study. Source: Electric Vehicle Market Implementation Study

Accelerating EV Adoption Goal #2: Increase the number of electric transit vehicles in Colorado to 500 by 2030. Goal #3: Increase the number of public and private employers in Colorado that provide workplace charging to employees. Goal #5: The State of Colorado will lead by example by accelerating purchase of EVs for agency fleets and investment in EV charging infrastructure.

Accelerating EV Adoption Goal #5: The State of Colorado will lead by example by accelerating purchase of EVs for agency fleets and investment in EV charging infrastructure.

EV Fast-Charging Corridors

Electric Buses – Benefits • Air Quality Improvements: Electric buses reduce tailpipe emissions, reducing CO 2 and improving air quality in cities. • Lower total cost of ownership (TCO): In certain configurations electric buses have a lower TOC than comparable diesel or CNG buses. • Noise reduction and reduced downtime: Electric buses run more quietly, reducing noise pollution. Electric buses also require less maintenance. • Industrial policy considerations: Job creation linked to production and supporting industries is an important consideration.

Electric Buses – Barriers • High upfront costs: May require a change in the procurement approach from purchase to lease while focusing more on lower TOC. Lease or loan payments could be covered with operational savings. • Scalability: Most of the electric buses have been purchased with support from national and regional grants. This is not scalable. The upfront cost of ebuses will have to become more cost competitive. • Flexibility and operational experience: Electric buses can be less flexible than diesel buses due to their range and reliance on different charging options. • Electricity charges, grid issues: Concerns about electricity rates/demand charges, space required for charging infrastructure.

Electric Buses – the Business Case

State of Colorado John W. Hickenlooper, Governor 1580 Logan Street, Suite OL 1 Denver, Colorado 80203 The Colorado Energy Office @coenergyoffice