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Electric Drive Transportation:
Recovery Priorities
President, EDTA
Pandemic Impacts on the Market
• Travel and retail restrictions, combined with the widening economic
downturn, are creating immediate and long-term challenges for vehicle
and infrastructure sales and operations.
• Immediate and long-term damage to the auto industry, which in the U.S.
directly employs over four million people.
• Industry analysts are predicting major downturns in 2020, including
Morgan Stanley, which is predicting a 30% decrease in car sales for the
year.
• Shutdowns throughout the supply chain are creating compounding
hardship and market disruption across the electric transportation
industry.
Impacts magnified in emerging
markets
• Product launches delayed
• US and Global sales projections are down
– “EV sales to drop for the first time in modern era”
– Globally, the BNEF forecast calls for 1 in 10 autos sold to be battery-
powered by 2025, some 8.5 million machines. Only 13% of those vehicles,
however, will be in the U.S., the world’s second-largest market
– Impact on US competitiveness/global race for clean technology as EU and
China invest in clean tech as part of recovery
Infrastructure providers are also suffering from a severe
downturn in demand and restrictions on their operations.
– Major electric charging providers are reporting that utilization rates at their
operating stations have decreased by 60%
– 70% of their charging stations under development have been delayed by
state and local shelter-in-place requirements.
Recovery Recommendations
Mitigate the immediate damage to demand and
investment
Strengthen the electric drive value chain in the medium
term
Invest in a long-term, comprehensive effort to electrify
the transportation sector
Immediate Action
• Existing Programs provide expedited pathways to provide
immediate economic stimulus and job recovery and growth in
electric vehicles and infrastructure
• DEPARTMENT OF TRANSPORTATION
– Congestion Mitigation and Air Quality (CMAQ)
– Low or No Emission Vehicle Program
• DEPARTMENT OF ENERGY
– State Energy
– Clean Cities
– EISA Sec. 131 Transportation Electrification
• ENVIRONMENTAL PROTECTION AGENCY
– Diesel Emissions Reduction Act (DERA)
– E-RINs in Renewable Fuels Standard
Tax Policy
• Immediate market support for electric vehicles and infrastructure
purchases, through updated federal tax incentives that reflect current
economic challenges, can ease the transportation cost burden on
consumers and mitigate losses throughout the industry supply chain.
• Policies to make these federal tax policies more effective in the current
and upcoming economic landscape need to be considered, including
refundability, grants in lieu of taxes and point of sale programs
– The Driving America Forward Act (HR 2256/S. 1094) provides that certainty by lifting
the manufacturer sales cap on eligible plug-in electric vehicles in Section 30D and
extending the availability of the Section 30B fuel cell electric vehicle credit.
– The Section 30C alternative fuel vehicle infrastructure credit should be extended and
updated to reflect current market needs for high-speed options, including raising the
eligible cost cap for commercial property.
Long Game: 21st Century
Infrastructure
• Large scale planning and investment in local,
regional and national electric transportation
infrastructure
• Development and Manufacturing of light-,
medium- and heavy-duty vehicles to ensure the
viability of the U.S.’s position as a leader in the
global race for electric transportation technology.
21st Century Transportation
• Ensures that all transportation users (residential, commercial, fleet and transit) have
access to vehicles and infrastructure that serve their needs and drive cycles, from
commuting to interstate commerce, including diverse fast charging and workplace
charging options.
– RECOMMEND: Establish a grant program for deploying electric drive infrastructure nationally, along the scale and
structure of the alternative fuel corridors program contained in S. 2302.
– Provide a corresponding investment in a national program supporting investment in local and regional infrastructure,
including rebates and federal grants to state and local governments for workplace and public charging/refueling projects
that ensure equal access to ET.
• Builds technology and market leadership through support for near- and long-term
innovation through research and development of electric drive vehicle, component and
infrastructure technologies.
– RECOMMEND: Expand and update the funding and scope of the Department of Energy’s Vehicle and Fuel Cell
Technologies programs to support large scale demonstrations for new technologies in light-, medium- and heavy-duty
segments.
• Supports public and private sector incentives for development, manufacture and
deployment of electric drive vehicles and infrastructure and builds out the electric
drive value chain workforce.
– RECOMMEND: Support investment in U.S. manufacturing of vehicles and infrastructure, including Manufacturing facility
Grants; Expand medium- and heavy-duty manufacturing eligibility in ATVM;
– Accelerate the electrification of public and private fleets; Update the School Bus fleet with increased federal funds for
acquisition of buses and infrastructure; resources for workplace training .
– Promote consumer adoption through non-financial incentives, including expanding states’ ability to provide HOV lane
access to electric drive vehicles.
Genevieve Cullen
Gcullen@electricdrive.org
www.electricdrive.org

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Electric Drive Transportation: Recovery Priorities by Genevieve Cullen

  • 1. Electric Drive Transportation: Recovery Priorities President, EDTA
  • 2. Pandemic Impacts on the Market • Travel and retail restrictions, combined with the widening economic downturn, are creating immediate and long-term challenges for vehicle and infrastructure sales and operations. • Immediate and long-term damage to the auto industry, which in the U.S. directly employs over four million people. • Industry analysts are predicting major downturns in 2020, including Morgan Stanley, which is predicting a 30% decrease in car sales for the year. • Shutdowns throughout the supply chain are creating compounding hardship and market disruption across the electric transportation industry.
  • 3. Impacts magnified in emerging markets • Product launches delayed • US and Global sales projections are down – “EV sales to drop for the first time in modern era” – Globally, the BNEF forecast calls for 1 in 10 autos sold to be battery- powered by 2025, some 8.5 million machines. Only 13% of those vehicles, however, will be in the U.S., the world’s second-largest market – Impact on US competitiveness/global race for clean technology as EU and China invest in clean tech as part of recovery Infrastructure providers are also suffering from a severe downturn in demand and restrictions on their operations. – Major electric charging providers are reporting that utilization rates at their operating stations have decreased by 60% – 70% of their charging stations under development have been delayed by state and local shelter-in-place requirements.
  • 4. Recovery Recommendations Mitigate the immediate damage to demand and investment Strengthen the electric drive value chain in the medium term Invest in a long-term, comprehensive effort to electrify the transportation sector
  • 5. Immediate Action • Existing Programs provide expedited pathways to provide immediate economic stimulus and job recovery and growth in electric vehicles and infrastructure • DEPARTMENT OF TRANSPORTATION – Congestion Mitigation and Air Quality (CMAQ) – Low or No Emission Vehicle Program • DEPARTMENT OF ENERGY – State Energy – Clean Cities – EISA Sec. 131 Transportation Electrification • ENVIRONMENTAL PROTECTION AGENCY – Diesel Emissions Reduction Act (DERA) – E-RINs in Renewable Fuels Standard
  • 6. Tax Policy • Immediate market support for electric vehicles and infrastructure purchases, through updated federal tax incentives that reflect current economic challenges, can ease the transportation cost burden on consumers and mitigate losses throughout the industry supply chain. • Policies to make these federal tax policies more effective in the current and upcoming economic landscape need to be considered, including refundability, grants in lieu of taxes and point of sale programs – The Driving America Forward Act (HR 2256/S. 1094) provides that certainty by lifting the manufacturer sales cap on eligible plug-in electric vehicles in Section 30D and extending the availability of the Section 30B fuel cell electric vehicle credit. – The Section 30C alternative fuel vehicle infrastructure credit should be extended and updated to reflect current market needs for high-speed options, including raising the eligible cost cap for commercial property.
  • 7. Long Game: 21st Century Infrastructure • Large scale planning and investment in local, regional and national electric transportation infrastructure • Development and Manufacturing of light-, medium- and heavy-duty vehicles to ensure the viability of the U.S.’s position as a leader in the global race for electric transportation technology.
  • 8. 21st Century Transportation • Ensures that all transportation users (residential, commercial, fleet and transit) have access to vehicles and infrastructure that serve their needs and drive cycles, from commuting to interstate commerce, including diverse fast charging and workplace charging options. – RECOMMEND: Establish a grant program for deploying electric drive infrastructure nationally, along the scale and structure of the alternative fuel corridors program contained in S. 2302. – Provide a corresponding investment in a national program supporting investment in local and regional infrastructure, including rebates and federal grants to state and local governments for workplace and public charging/refueling projects that ensure equal access to ET. • Builds technology and market leadership through support for near- and long-term innovation through research and development of electric drive vehicle, component and infrastructure technologies. – RECOMMEND: Expand and update the funding and scope of the Department of Energy’s Vehicle and Fuel Cell Technologies programs to support large scale demonstrations for new technologies in light-, medium- and heavy-duty segments. • Supports public and private sector incentives for development, manufacture and deployment of electric drive vehicles and infrastructure and builds out the electric drive value chain workforce. – RECOMMEND: Support investment in U.S. manufacturing of vehicles and infrastructure, including Manufacturing facility Grants; Expand medium- and heavy-duty manufacturing eligibility in ATVM; – Accelerate the electrification of public and private fleets; Update the School Bus fleet with increased federal funds for acquisition of buses and infrastructure; resources for workplace training . – Promote consumer adoption through non-financial incentives, including expanding states’ ability to provide HOV lane access to electric drive vehicles.