WGA TRANSPORTATION FUELS FOR THE FUTURE INITIATIVE Electricity Report Summary

1
WGA TRANSPORTATION FUELS FOR THE FUTURE
INITIATIVEElectricity Report Summary
Transportation Fuels for the Future Workshop
Denver, CO October 10-12 , 2007

• Bob Graham, Electric Team Lead

2
Fuel Potential in the West

• Point 1 - While there is substantial concern for
  adequacy of petroleum supplies, the West has
  ample coal, natural gas, solar, and wind
  resources from which electricity can be produced
• Point 2 - The West has an excellent electrical
  infrastructure is in place and immediately
  available. Electric utilities have substantial
  unused off-peak capacity available for overnight
  or other charging. Use of this capacity would
  markedly benefit the electric utility industry.
  Needed technology development for charging
  vehicles is trivial.
• Point 3 - Use of electricity for transportation
  will significantly reduce toxic and carbon
  emissions compared to petroleum fuels.

3
Unique Challenges

• Challenge 1 - Present battery technology makes
  electric and plug-in hybrid-electric vehicles
  more expensive than a comparable vehicle with the
  same amenities, limits electric range, and
  increases vehicle weight.
• Challenge 2 - Consumer acceptance of new,
  likely more expensive technology, could
  expectedly be slow unless a strong value/benefit
  can be established.
• Challenge 3 - Infrastructure developments such
  as consumer education regarding home refueling,
  off-peak utility pricing, public and on-the-road
  charging facilities and possible utility buy-back
  provisions from two-way charging connections are
  needed to fully take advantage of the potential
  of electricity use for transportation.

4
Select Priority Recommendations

• General Recommendation - The transition to
  widespread use of electricity as a transport fuel
  in the Western states requires consumer education
  and a long-term commitment from key parties,
  including utilities and government agencies.
• Recommendation 1 - Provide stable funding at the
  federal and state levels for battery research and
  development and distribute the results to the
  public as widely as possible. (near-term)
• Recommendation 2 - Support federal, state and
  local demonstrations of plug-in hybrid electric
  vehicles (PHEVs) by public and private entities.
  (near-term)
• Recommendation 3 - Revise government fleet
  purchasing programs to provide market certainty
  to manufacturers and promote technology
  demonstration. (near-term)
• Recommendation 4 - Address the uncertainty
  associated with the new technology of new
  financing and insurance options, e.g.,
  state-backed battery warranties that extend
  beyond current manufacturer warranties and
  utility financing for batteries. (mid-term)
• Recommendation 5 - Increase state-level
  cooperation with utilities, mortgage companies
  and others to develop new mechanisms to mitigate
  the upfront cost of PHEVs, such as financing
  through mortgage equity. (long-term)

5
Key Actionable Recommendations

• Include fleet purchase requirements that set fuel
  consumption and emission requirements to promote
  early purchases of PHEVs.
• Continue and extend state and local incentives to
  build markets and consumer acceptance for
  vehicles using electric fuel, including tax
  incentives for consumer and private fleet
  purchases and investment incentives for vehicle
  and advanced component manufacturers.
• Implement state and regional business attraction
  programs coordinate with members of Congress in
  efforts to promote investment in the electric
  drive vehicle-related industry within their
  states and regions.
• Increase state and federal cooperation with the
  automotive and battery industries to develop
  demonstration partnerships, such as deployment of
  prototypes and insertion of advanced batteries
  into fleets of demonstration vehicles.