ASEAN Sustainable Energy Conference Bangkok, Thailand, June 7 - 10, - PDF document

ASEAN Sustainable Energy Conference Bangkok, Thailand, June 7 - 10, 2017 The State of Electric Mobility in Oregon Hans van der Meer President & CEO EV4 LLC, 2727 SE Raymond Street Portland, Oregon 97202 USA, Hans@EV4Oregon.com About Oregon Oregon is located in the Northwestern United States, just north of California. It is the 9 th largest state in the U.S., but with a total population of just 3.9 million, it is ranked 39 th in population density. Approximately 70% of the state population, some 2.7 million people, live in the Willamette Valley – a region approximately 200 km long and 60 km wide stretching south from the state’s major city, Portland. The Portland Metropolitan area stretches over the border into Washington State, and is the 23 rd largest in the U.S. with a total regional population of approximately 2.3 million. Oregon had approximately 3.2 million registered passenger vehicles in 2013 1 , and total sales of new passenger vehicles in Oregon were just 133,100 in 2012. Oregon has some of the cheapest and lowest-carbon electricity in the U.S., due in large part to an extensive hydroelectric system. Over 63% of Oregon’s power comes from clean sources. The small northwestern state of Oregon has emerged as one of the world’s leading states for electric mobility over the past five years. Oregon’s successes over the past five years is thanks to a number of key factors which have driven this success: 1. A history of progressive public policy, including tax credit incentives. 2. The ability to forge strong public-private partnerships among many diverse stakeholders. 3. A strong environmental ethic. 4. A willingness for its consumers to be “early adopters” of new technology. 1 The Electric Vehicle Market in the U.S. and Oregon In 2011, the Oregon Innovation Council made an initial investment of $1.2 million in Drive Oregon , a new public-private partnership designed to accelerate the growth of the electric vehicle industry. At that point, the all-electric Nissan Leaf and the extended range electric Chevy Volt were the only mass market electric passenger cars that were widely available, and the industry was in a very early stage of development. The past five years have seen dramatic growth and diversification in the EV industry. There are now 27 different models of electric passenger vehicle available in the United States, a number that is expected to climb to 36 by the end of 2016. EV4 Speaker Presentation at ASEAN Sustainable Energy Conference 1

EV’s are selling much better than hybrid vehicles did at this point in their product cycle. Last year electric vehicle sales grew by about 60 percent worldwide, and battery prices fell 35 percent, leading Bloomberg New Energy Finance is predicting price parity for electric vehicles by 2022 and that “…the 2020s will be the decade of the electric car. ” These EV sales are not evenly distributed. California leads the United States, with electric vehicles accounting for approximately 3 percent of new car sales statewide , while Oregon sales are approximately 1.5 percent. While sales are growing, there is much further to go. Oregon is one of nine states that have adopted the Zero Emission Vehicle (ZEV) Mandate developed in California, which requires approximately 15 percent of new vehicle sales in 2025 to be zero-emission vehicles. Oregon has also joined other state and national governments in a more ambitious goal of having all new cars sold be zero-emission electric vehicles by 2050 . 2 Oregon and Its Advantages 2.1 History of progressive Public Policy Oregon is generally identified as one of the most politically liberal states in the nation. More importantly, Oregon has a long history of policy innovation, particularly in the realm of transportation and mobility. In 1919 Oregon was the first state in the nation to adopt a gasoline tax to fund roads, in 1933 the first state to adopt a weight-mile tax on commercial vehicles, and in 1973 the first state to adopt strong land use planning regulations . More recently 2001, Portland led a major urban renaissance by shifting freeway spending to mass transit in the 1970s, was home to the first for-profit car sharing business in the United States in 1998, built the first modern streetcar line in the United States since World War Two in 2001, and is consistently rated one of the top U.S. cities for bicycling, with approximately 6% of all workers commuting by bicycle. Over the past decade, Oregon has led efforts to develop per-mile car insurance policies and a per-mile road use charge to replace the state’s gas tax. This in anticipation of EVs taken over from the gasoline vehicles. 2.2 Early Adopter Market Oregonians are technology savvy “early adopters,” with many residents working in the “Silicon Forest” companies like Intel, Nike, Mentor Graphics, and others. When the first hybrid vehicles became available in the 1990s, Oregon quickly emerged as one of the leading markets, and it has continued to be a top market for hybrids to this day. EV4 Speaker Presentation at ASEAN Sustainable Energy Conference 2

3 Oregon Leadership 3.1 Growth in Vehicle Sales Oregon remains one of the top electric vehicle markets in the country on a per capita basis , and has seen strong growth in electric vehicle sales since 2011. This is despite the fact that Oregon lacks a state purchase incentive or tax credit for electric vehicles, something that is key to sales in most states. Strong partnerships and marketing work, led in part by Drive Oregon, have helped make Oregon an “unconventional success story” in this regard. EV sales rates and registrations have both increased more than 5X since 2011 . 3.2 Growth in Charging Infrastructure Oregon has as much charging infrastructure per capita as nearly any region in the world , and has a particularly robust network of fast chargers . Oregon, Washington, and California led the nation in creating the first fully electrified highway (Interstate 5, dubbed the “West Coast Electric Highway.” ) Oregon has added over 600 public Level 2 charging stations and over 115 fast chargers since 2011. 3.3 National Leadership in Workplace Charging The US Department of Energy launched the Workplace Charging Challenge to convince more employers to provide charging for their employees – and has found that employees at participating workplaces are up to 20 times more likely to drive EVs . Drive Oregon has recruited more employers to this program than any other organization in the country. The 56 regional employers we have recruited account for 16% of all partners in the nation, and include global firms such as Nike, Intel, and HP as well as small, local businesses. EV4 Speaker Presentation at ASEAN Sustainable Energy Conference 3

3.4 Industry Growth Portland State University completed recently an economic analysis of Oregon’s electric vehicle industry. That study conservatively estimated that the industry provided over 1,600 jobs and gross annual economic activity of over $266 million since 2011. Since that time, Drive Oregon has used state funding to provide highly leveraged funding to Oregon companies through its Matching Grant program. These grants provide a maximum of $50,000 with a 5:1 match requirement, and have yielded a number of success stories. Overall, total grant awards of $521,793 have leveraged over $24.5 million in additional investment into growing Oregon’s electric vehicle industry. Even by conservative state measures, Drive Oregon’s investments have created or retained 68 jobs. We expect these numbers to continue to grow as the momentum behind the industry grows. EV4 Speaker Presentation at ASEAN Sustainable Energy Conference 4