Energy Efficient Transportation Highlights

Energy Efficient Transportation State, Local, and Utility Policy Updates

ALABAMA

Electric Vehicle Innovation, Workforce Development Investment: Governor Kay Ivey awarded $16.5 million to a partnership between the University of Alabama, Alabama Power, and Mercedes Benz U.S. International to build a new facility at the University of Alabama to house the Alabama Mobility and Power Initiative and support the growing electric vehicle market.

Electric Vehicle Manufacturing: Li-Cycle Holdings Corporation is building a new lithium-ion battery recycling facility in Tuscaloosa near Mercedes- Benz U.S. International. According to Li-Cycle, the Southeast is becoming critical to the lithium-ion battery supply chain by closing the recycling gap and supporting the operational investments made by battery manufacturers and Original Equipment Manufacturers in the region.

Drive Electric Alabama Launch: On November 29, the State of Alabama launched Drive Electric Alabama, an electric vehicle education and marketing initiative, through the Alabama Department of Economic and Community Affairs (ADECA). The program will raise awareness and advocate for electric vehicle adoption in Alabama.

ARKANSAS

Solar & EV Partnership: Envirotech Vehicles and Shine Solar, are partnering through an agreement under which Shine Solar will promote and sell products from Envirotech as well as purchase at least one van and one Class 4 or 5 truck for demonstrations. Envirotech provides zero-emission electric vehicles for commercial fleets, school districts, last-mile applications, colleges and universities, and public and private transportation operations. Shine Solar customers will be able to purchase zero-emission vehicle options through this agreement.

Electric Transit Bus Grant: Rock Region Metro, the transit authority servicing Pulaski County, was awarded $4.9 million from the Federal Transit Administration’s (FTA) Low- or No-Emission Grant Program to purchase up to five battery electric buses and charging infrastructure. Proterra, a zero-emission bus manufacturer with a facility in Greenville, SC, will be providing the buses with a range of 345 miles. This project, an aspect of “Shock the Rock” supports the Metroplan’s larger long-range metropolitan transportation plan goals.

Electric Vehicle Manufacturing: Canoo, an electric vehicle manufacturer, is building its headquarters and a low production facility for small package delivery vans in Bentonville, Arkansas and a research and development center in Fayetteville, Arkansas which will bring 545 jobs to Benton and Washington counties. This investment is part of a larger transformation of U.S. Route 412 between Arkansas and Oklahoma into an electric vehicle manufacturing and research hub. In June 2021, Canoo built its first electric vehicle manufacturing facility in Oklahoma.

FLORIDA

First Electric Transit Buses in South Florida: Broward County Transit, based in Fort Lauderdale, Florida ordered twelve battery-electric transit buses, the first in South Florida. The buses are the first in Broward County Transit’s goals of electrifying 100% of its fleet by 2035. The buses have a range of over 300 miles.

Interstate Charging Infrastructure: The Florida Department of Environmental Protection (DEP) awarded a $12.5 million grant to Blink Charging Company to deploy 52 DC fast chargers at 25 sites along interstates, 95, 75, 10, and 4 in Florida. The charging sites will be along the state’s evacuation routes supporting the state’s resilience efforts. Each site will have two 175 kW DC fast chargers with deployment beginning in the fall of 2021.

Leading EV Charging Infrastructure: Miami is leading the nation in installing electric vehicle infrastructure, alongside New York and Los Angeles. According to the U.S. Department of Energy (DOE), 40% of the state’s EVs are registered in the city of Miami. They have the third highest number of charging infrastructure in the U.S. Florida Power and Light is focused on placing charging stations along roads beyond the urban center in efforts to provide accessibility and encourage the growing use of EV.

Municipal Fleet Conversion: The city of Clearwater adopted a green fleet policy to convert 100% of municipal, light-duty vehicles to alternative fuel vehicles by 2040. Transportation accounts for 38% of city-wide emissions and transitioning the light-duty fleet will support the city’s sustainability goals.

EV Manufacturing: Cenntro Automotive is building a new 100,000 square foot manufacturing facility that will support the company’s electric vehicle production in Jacksonville, FL. The facility will create 34 jobs and support production of over 50,000 vehicles annually within four years. Cenntro is expected to invest $25 million and begin production in Q1 of 2022. Jacksonville’s Port Authority will be critical to importing materials and exporting finished products. Cenntro’s products include Class 1-4 vehicles and off-road vehicles with customers in over thirty countries.

GEORGIA

Clean Energy Jobs: SK Innovation, a South Korean battery manufacturer, is planning to hire more than six thousand workers by 2025 for their new battery manufacturing plant in Jackson County, Georgia. The manufacturing plant will build batteries for 330,000 electric vehicles, including the electric Ford F-150, annually by 2025.

Electric Mobility and Innovation Alliance: Governor Brian Kemp formed the Electric Mobility and Innovation Alliance (EMIA) hosted by the Georgia Department of Economic Development and supported by the University of Georgia to identify Georgia’s role in developing the electric mobility industry. The EMIA includes multiple stakeholders from the private and public sectors focused on capitalizing on the electric mobility investments in Georgia and recommend policy initiatives to further support electric mobility efforts.

Expanding EV infrastructure: To support the growing number of electric vehicles in the state, Georgia Power will build out their EV infrastructure. Georgia Power wants to work with customers, businesses, and government entities as they expect more than 116 million electric vehicles on the road by 2030.

EV Manufacturing: Rivian Automotive, an electric vehicle manufacturer, is building a $5 billion battery and vehicle assembly plant in Morgan and Walton counties, east of Atlanta. The facility is expected to employ over 7,500 workers and will be able to produce up to 400,000 vehicles each year. Construction is expected to begin summer 2022 and production will start in 2024.

KENTUCKY

EV Industry Growth: Investment and demand from electric vehicle manufacturing in the U.S. has spurred expansion from electric vehicle component manufacturers in Kentucky. Trace Die Cast, an EV component manufacturer in Bowling Green, is collaborating with EV producers Ford Motor Company and Rivian. Arkema, based in Calvert City, who produces the polymer that binds components of the batteries, expanded production by 20% in 2018. Hitachi launched new operations in Berea, where they will manufacture motors for electric vehicles. Firestone is investing $51 million, that will create 250 jobs in Whitley County, and will increase production for air suspension components.

Fuel Cell Modules Production: Beginning in 2023, Toyota will be building integrated dual fuel cell modules at the Toyota Motor Manufacturing Kentucky facility in Georgetown. The modules will be used in hydrogen-powered Class 8 heavyduty trucks. The fuel cell modules will deliver 160 kW of power and be a piece of Toyota’s integrated powertrain offering. Heavy-duty truck manufacturers will be able to buy a fuel-cell electric drive system that can deliver over 300 miles of range at load weight of 80,000 pounds.

MISSISSIPPI

EV Charging Pilot Program: On September 17, Entergy Mississippi (EML) filed a notice of intent with the Mississippi Public Service Commission to change rates and start an EV fast charging pilot program. EML proposes to construct, own, and operate seven direct current fast charging stations for EVs along interstate highway corridors in western Mississippi. Each station will consist of at least two chargers.

NORTH CAROLINA

Battery Manufacturing Plant: Toyota will build a $1.29 billion battery manufacturing facility in Liberty, North Carolina, to produce hybrid and electric vehicle batteries with state and local incentives totaling $438.7 million. Production at the facility will begin in 2025 with expansion in 2031. Toyota is looking to produce 1.2 million battery packs each year at the site. The investment will create 1,750 jobs with an average minimum salary of $62,000. Toyota announced plans to make 70% of its vehicle sales electric by the end of the decade. The battery plant is expected to serve vehicle production facilities in Alabama, Indiana, Kentucky, Missouri, and Texas.

Arrival Facilities Expansion: Arrival is investing $11.5 million to build its third facility in the Charlotte area, a battery module assembly plant, creating 150 jobs. The battery modules will be used in Arrival’s bus and van vehicle being built in its plants in Charlotte and Rock Hill, S.C. This announcement is part of Arrival’s commitment of vertical integration and building a domestic supply chain with its partnership with Li-Cycle, who recycles batteries in North America.

SOUTH CAROLINA

EV Charging Station Code Amendment: In May, the state legislature unanimously approved Senate Bill 304, which amended current code to exempt a person or corporation that resells electricity at an electric vehicle charging station and purchased electricity from an electric utility in the state from being considered an electric utility themselves. It has been signed into law by Governor Henry McMaster.

Port Electrification: Through the U.S. EPA’s Diesel Emissions Reduction Act (DERA) grant program, the South Carolina Ports will facilitate a $1.3 million grant to A&R Logistics and Benore Logistic Systems, Inc. The grant will replace eight diesel freight haulers with Peterbilt zero-emission, battery-electric tractor trucks. The trucks will be deployed for operations in the Port of Charleston, the Savannah area, and between BMW’s manufacturing plant and the Inland Port at Greer. Surrounding communities will see health benefits from the reduction of air emissions.

East Coast Proterra Battery Plant: Proterra is building its first battery factory on the east coast of the United States in Greer, SC in response to an increased demand in commercial electric vehicles such as delivery trucks, work trucks, industrial equipment, and buses. Proterra is investing $76 million that would create at least 200 jobs. Production is expected to begin in Q3 or Q4 of 2022 with expanded production capacity in 2025. The facility will be close to Proterra’s existing bus manufacturing plant.

TENNESSEE

EV Charging Stations to be Installed at State Parks: Electric vehicle manufacturer, Rivian Automotive, and the Tennessee Department of Environment and Conservation are partnering to deploy Rivian’s Waypoint electric vehicle charging stations at the state’s 56 state parks. The Level 2 chargers will be designed and installed by Rivian and will be able to provide up to 11.5 kW of power to all electric vehicle models. The charging will be initially free and can be monitored through Rivian’s mobile app. Installation is expected to begin in fall 2021 and extend into spring 2022.

EV Battery Materials Manufacturing: The country’s first manufacturer of materials for lithium-ion batteries used in electric vehicles and power grid storage is building a facility in Chattanooga, TN. NOVONIX is investing $160 million into an existing plant, creating 300 jobs. The announcement was attended by DOE Secretary Jennifer Granholm, emphasizing the Biden administration’s prioritization of building a domestic supply chain for electric vehicles. Production is expected to begin in early 2022 with the ability to produce 10,000 tons of material annually.

EV Workforce Development: Ford’s $5.6 billion investment into west Tennessee includes developing a curriculum customized for K-12 and technical college students teaching skills critical to producing electric trucks and batteries. Ford is working with the Tennessee Departments of Education and Labor and Workforce Development to design courses and potentially install equipment used in a Ford factory. Ford wants to begin training either in 2022 or early 2023. Additionally, Ford’s philanthropic arm, Ford Fund, could include plans to diversify the workforce by serving underserved communities in the future.

VIRGINIA

Cleaner School Buses: There are multiple initiatives advancing electric school buses in Virginia. The Virginia Department of Environmental Quality (DEQ) awarded $10.5 million in the first round of Volkswagen settlement funding to replace 83 diesel school buses with 44 propane and 39 battery-electric school buses. School districts with older buses and that enroll large numbers of students with free and reduced-meal programs will be given preference for the new buses. Some advocates are pushing the state to transition the 17,000 diesel school buses in Virginia to electric vehicles over the next ten years. Current legislation, HB 2118, would establish a grant fund in the DEQ to cover the costs of electric school buses and charging infrastructure. Additionally, Dominion Energy is conducting a fifty-bus pilot program for school districts in its service area. Fifteen localities are included in the pilot. School districts are asked to cover the cost of a diesel bus, $109,000, while Dominion Energy will cover the incremental costs and own the batteries and propulsion systems. Thomas Built Buses will be supplying the electric school buses.

Clean Car Emissions Regulations: The Virginia State Air Pollution Control Board approved regulations to reduce greenhouse gas emissions from vehicles after the state legislature approved the adoption of California’s vehicle emission standards in February 2021. The standards require more stringent tailpipe emissions for light-duty and medium-duty vehicles and sets targets for electric vehicle sales. Virginia is the 15th state to adopt California’s standards instead of the federal standards allowed by the Clean Air Act. The regulations will require new vehicles meet limits for nitrogen oxide, carbon monoxide, particulate matter, and greenhouse gas emissions. Dealers in Virginia will have to sell California certified vehicles beginning with model year 2025. Additionally, the regulations will require manufacturers to sell a certain portion of electric, fuel cell, or plug-in hybrid vehicles. Regulations will go into effect early 2024.

Electrifying Trucks and Buses: In early December, Governor Northam signed the Multi-State Medium- and Heavy-Duty Zero Emission Vehicle Memorandum of Understanding (MD/HD MOU). The MD/HD MOU is a voluntary agreement in which signatories aim to electrify all new large trucks and buses within their states by 2050. Additionally, it has a goal for signatories to electrify government fleets. Fifteen other states have signed the MD/HD MOU including North Carolina.

Energy Efficient Transportation Regional, National, and Federal Policy Updates

Second Life for EV Batteries: Through a Memorandum of Understanding (MOU), UL and Hyundai Motor Company will collaborate on the safe deployment and use of second life battery energy storage systems (SLBESS). Second life applications for batteries include grid-connected energy storage after use in vehicles. This can boost grid reliability and integrate renewable energy sources.

Electrifying the Federal Fleet: Through an executive order in January 2021, President Biden ordered federal agencies to procure clean zeroemission vehicles. A report from Atlas Public Policy and the Electrification Coalition says the federal government could save more than $1 billion by replacing 97% of the light-duty and buses with electric vehicles by 2030. The U.S. Postal Service (categorized as a separate fleet in the report) would see $2.9 billion in savings by electrifying more than 99% of its fleet by 2025.

EV Promotional Series: The Tennessee Valley Authority (TVA) launched a web-series that promotes electric vehicles. The series consists of five episodes which answers questions about the benefits of electric vehicles and corrects misinformation.

Utility Fleet Transition: By 2030, TVA plans to convert all their passenger cars and at least half of the pickup and light cargo trucks in its fleet to electric vehicles, almost 1,200 vehicles. Gas-powered vehicles will be replaced towards the end of their life cycle and medium- and heavyduty trucks will be replaced with electric vehicles as technology and economies of scale improve.

New U.S. EV Sales Goal: In August, President Biden signed an executive order targeting 50% of all new passenger vehicles sales in the U.S. to be electric by 2030. Experts say that developing supply chains for raw materials and increasing investment in charging infrastructure is needed to achieve this goal. Automotive manufacturers, General Motors Co., Ford Motor Co., and Stellantis N.V., through a joint statement announced their “aspirations” to meet President Biden’s goal. COVID-19 has significantly affected global supply chains, but rising electric vehicle demand and environmental, social, and corporate governance will be components in the development of new and existing supply chains. Utilities will play a key role in the Biden administration’s 50% goal as new electric vehicles will increase demand on the electric grid. The Edison Electric Institute, which represents investor-owned utilities, is already investing $3 billion in customer programs for charging infrastructure.

EV Charging Software: Southern Company, the second largest utility in the U.S. serving over 4.3 million customers, and Volta Charging, an electric vehicle charging network provider, signed a multi-year agreement to use Volta Charging’s new product, PredictEV. PredictEV, uses analytics and advanced AI to predict local mobility, demographic, corporate, and site-specific data to identify charging station sites, the right mix of Level 2 and DC fast chargers, and anticipated EV adoption for a specific area. This announcement builds off an existing partnership between Volta Charging and Alabama Power, one of the electric subsidiaries of Southern Company along with Georgia Power, Mississippi Power, and Gulf Power.

Southeast EV Manufacturing: Ford Motor Company announced plans to invest $11 billion to build multiple plants in Tennessee and Kentucky that would manufacture parts for electric vehicles. This investment, which includes battery recycling, is critical to reducing the chances of global supply disruptions like battery and semiconductor chip shortages happening globally. Ford’s goal of 140 Gigawatts of battery capacity will be met with this investment as well as the SK Innovation investment in Georgia. Two battery plants will be built in Glendale, Kentucky creating 5,000 jobs. Production for the battery plants will begin in 2025 and 2026.

Federal Greenhouse Gas Emissions: The U.S. Environmental Protection Agency (EPA) finalized federal greenhouse gas emissions standards for light-duty passenger cars and trucks on December 20. The standards apply to model years (MY) 2023 through 2026. The standards are expected to bring $190 billion in net benefits for Americans by reducing climate pollution, improving public health, and saving money at the pump. The U.S. EPA projects that by MY 2026 standards can be met with sales of about 17% electric vehicles and adoption of more advanced technologies. The rule will accelerate the rate of stringency increases as follows: +10% from MY 2022-2023, +5% from MY 2023-2024, +6.6% from MY 2024-2025, and +10% from MY 2025-2026. A separate rulemaking to establish multi-pollutant emissions for MY 2027 and later will be initiated.