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Policy Institute Takes on the News

Check here for our weekly take on what’s happening in the news and the policy implications in California and beyond.

Week of October 11, 2021

What’s Happening – Google launches feature to track flight emissions

Google recently announced that their Google Flights platform will show the amount of carbon emissions each flight produces, allowing users to compare the environmental impact of their flight options. Flights between a particular origin and destination with the fewest emissions will showcase a green badge. Experts generally agree this feature will make consumers more mindful of their carbon footprint and put pressure on airlines to reduce their carbon emissions to stay competitive. Others suggest that relying on travelers to choose lower-emissions flights unfairly places the responsibility on the consumer, rather than on the airlines. Google hopes to extend this type of sustainability measure to hotel booking services and other types of travel companies.

Here’s our take

UC Davis researchers Nina Amenta and Angela Sanguinetti looked at whether flight emissions information could influence consumer decisions in a May 2020 National Center for Sustainable Transportation study. They found that UC Davis employees were willing to pay more and travel to a less convenient airport for lower-emissions flights. They calculated that just providing emissions information to UC Davis business travelers could reduce the university’s air travel emissions by 4% annually while saving money, since some non-stop flights were cheaper. If other travel bookings and search platforms were to follow Google’s lead, this could have a cascading effect. Many consumers choosing lower-carbon flights could push airlines to invest in more efficient aircraft and sustainable aviation fuels. Highlighting emissions information could also increase consumer awareness of the environmental impacts of air travel. This could ultimately build support for emissions reduction regulations and investments in more sustainable travel alternatives.

Week of October 4, 2021

What’s Happening – Key environmental bills await Newsom’s approval

California’s Governor Newsom is deliberating hundreds of bills, including several key policies to advance sustainable land use, bike safety, vehicle electrification, and accessibility. The end of the California legislative session is often associated with a flurry of bills rushing through during the final days. This is the first year of the two-year legislative session, so many of the bills that did not advance through committee in time will have another chance. Around 900 lucky bills passed through both houses this year and made it to Governor Newsom’s desk. Newsom has been busy over the last few weeks and has already signed several of the bills that the Policy Institute has been tracking. These include bills that will impact our state’s climate, transportation, and land use and we will share the highlights from the session that relate to recent UC research findings. 

Here’s our take

Governor Newsom has already signed a number of key bills that will invest in climate mitigation, including $3.9 billion for electric vehicle investment and infrastructure. However, one Climate bill never even made it to his desk. After failing in the State Senate AB 1395, titled the “California Crisis Act”, would have set a goal of net-zero emissions by 2045. This bill came after the California EPA asked a collaborative research team from UC Davis, UC Berkeley, and UC Irvine to investigate how this goal would be attainable within the transportation sector, and identify the supportive policies necessary to achieve this goal. The research team identified a suite of necessary policies, and even in the absence of an ambitious 2045 target, California can still make progress towards net zero transportation emissions. 

Several other important policies that passed the legislature aim to do just that, including two notable climate bills that Newsom signed, SB 596, which aims to zero out emissions in the cement and concrete sector by 2045; and SB 500 which will require electrification of all automated vehicles (AVs) by 2030, with the exception of heavy freight vehicles. The latter bill reflects research findings, including a recent UC Davis AV policy paper that highlights the fact that electrifying AVs, which are likely to be high-mileage vehicles, align with California’s transportation and climate objectives.  

The legislature also gave the OK to several bills addressing land use and sustainability. Governor Newsom has yet to weigh in on AB 1147, which would reform the Regional Transportation Plan process and provide regions with guidance on how to build “15-minute cities” which aim to make mixed-use neighborhoods that are more friendly to people who bike and walk. Governor Newsom did sign SB 10, which will give local governments the authority to zone up to 10 homes per parcel in transit-rich or urban infill sites. Recent UC Davis research addresses the tensions surrounding transit-oriented development in California.  

The Governor also just signed a bill to reform how drivers pay for roadway maintenance: SB 339 calls for a second round of a Road Charge pilot by 2023, continuing to refine an alternative to the gas tax to collect transportation revenue. According to this recent UC Davis policy brief (that expands on previous research) road charges are more flexible than gas taxes, and likely more fair, while retaining the user pay principle of the gas tax. 

Several bike and pedestrian bills also advanced and now await a decision by the Governor, including AB 122, which will allow cyclists to treat stop signs as yields. This will reduce unnecessary traffic stops for cyclists, which is important in decriminalizing standard bike behavior and reducing barriers for biking. Similarly, AB 1238 will reform the way the state punishes people for jaywalking, ending a car-dominant era that historically criminalizes walking and reinforces racial inequities–jaywalking enforcement disproportionately targets Black people and people of color. Lastly, it’s worth mentioning that an e-bike purchase incentive will soon be available for Californians, despite the fact that AB 117 failed to move out of committee. The bill would have required CARB to provide financial incentives for e-bike purchases, based on UC Davis research on e-bike incentives. But the budget bill beat this bill to the e-bike store and included $10 million to add incentives for e-bikes to CARB’s existing ZEV incentive roster.  

 

Week of June 7, 2021

What’s Happening – Jet Fuel made from plastic waste 

New research shows a promising method for tackling worldwide plastic pollution through fuel production. Researchers have found a new approach to convert a common plastic, polyethylene, into jet fuel in about an hour. Utilizing an energy efficient method, this is the fastest and lowest temperature conversion technology that has been discovered to date. As of now, this new process is around 90% efficient in transforming the plastic into a usable fuel source. Other conversion methods rely on technologies that require high temperatures or longer times to turn plastics into fuel. This new discovery is intriguing in part because the cost of sorting recyclable plastics is currently very high. As of now, the researchers are looking to expand this process to be able to convert more types of plastic polymers instead of just polyethylene.

Here’s our take 

Plastic pollution is a major environmental and public health concern, and technological innovation will be critical to solving this seemingly intractable problem. This new technology that converts plastic into jet fuel more efficiently may hold promise, but needs to be demonstrated at a large scale. There is no research showing whether the fuel conversion is better than the current model of recycling the plastic. However, current recycling rates are extremely low, only 16% of all total plastics being recycled into new plastics each year, largely because it’s cheaper for manufacturers to use new plastic made from petroleum. The costs are only partly due to technology; the cost of collecting, sorting, transporting plastic back to manufacturers also plays a role. It remains to be seen whether the opportunity to turn plastic into jet fuel (which is typically a lower-value product than many plastic precursors) alters the economic balance.

Another key consideration is that even though plastic can be environmentally harmful when not disposed of properly, it is composed of solid carbon. Turning it into a fuel means it will eventually be burned, releasing that carbon as CO2, which exacerbates climate change, whereas recycling into new plastic keeps the carbon out of the atmosphere. A comprehensive life cycle assessment of these systems will be needed to determine whether there’s a greater emission benefit from recycling waste plastic into new plastic, or turning it into fuel and reducing the amount of oil we extract and process in order to fuel aircraft. If this new technology can be demonstrated on a large scale, it could help address the mounting plastic crisis.

Week of May 10, 2021

Update – Governor Jay Inslee Vetoes A Bill Banning Gas Powered Vehicles By 2030

Jay Inslee vetoed a bill from the Washington State Legislature that would have phased out gasoline powered vehicles requiring all light-duty vehicles sold, bought, or registered in the state to be electric by 2030 (see our previous Take on the News post for additional details). While this is a surprising move from Inslee, who has been a vocal and adamant climate advocate, his actions may have been a response to several concerns about the bill. First, this type of policy would not necessarily withstand federal litigations, given that California is the only state to receive a waiver to the Clean Air Act granting them the permission to set vehicle regulatory powers. But the core issue that Inslee had with the bill is that it would have made the 100% electrification goal reliant on the state meeting a goal of having 75% of vehicles using a new road user charge goal (paying per mile rather than per fuel taxes). According to a statement released by Jay Inslee (electrek) “setting and achieving a goal of 100% electric vehicles is too important to tie to the implementation of a separate policy like the road usage charge.”

What’s Happening – Washington State is First to Pass Bill Banning Gas Powered Vehicles By 2030 – Is the goal to go all electric by the end of the decade feasible?

The Washington State Legislature is poised to phase out gasoline powered vehicles, requiring all light-duty vehicles sold, bought, or registered in the state to be electric by 2030. If Governor Jay Inslee signs this bill, it will jumpstart Washington state’s push for electrification. Washington’s ban, if enacted, would also leapfrog California Governor Newsom’s executive order that pledges to ban the sale of gas powered vehicles by 2035. However, this bill is not yet law. It is on standby waiting to be signed into law by Governor Inslee after passing with a 25-23 Senate vote and a 54-43 House vote. The bill also includes a clause that would replace the state’s gas tax with a road usage charge, or a charge on vehicle miles traveled (VMT). These taxes and fees historically generate revenue to pay for road maintenance, transit, and other transportation infrastructure. Paying for these costs with road usage fees as opposed to a gas tax will provide a more stable supply of revenue, given concerns about declining gas tax revenues due to increasing fuel efficiencies and soon from increased sales of EVs. 

Here’s our take 

Washington passed a number of ambitious climate bills in 2021, adding a statewide carbon price, a phase-out of high-warming “super-pollutants,” building efficiency standards, and a low carbon fuel standard, as well as the internal combustion engine phase-out. Governor Jay Inslee has long made climate change a top priority, and this year, the state finally broke through years of Republican and petroleum company opposition to assert its claim to the title of “Most Ambitious Climate Policy by a U.S. State,” previously held by California (though California has additional sales requirements for zero emission trucks and many regulations already in place). Multiple legal and administrative challenges loom, however. Washington cannot legally pass vehicle regulations that are more stringent than regulations set by California and the federal government, unless there is a new interpretation of the law. The federal Clean Air Act outlines that vehicle regulatory powers rest with either federal authorities or California (whose authority was enacted into law in the Clean Air Act in 1970, as long as the emission requirements are more stringent than federal requirements), though California must receive a waiver from EPA for each new emissions regulation). 

  In order to meet the ambitious goals Washington or California are setting out, significant policy actions will need to follow. Researchers at the UC Institute of Transportation Studies recently released a carbon neutrality study for the transportation sector titled Driving California’s Transportation Emissions to Zero. Ultimately, the report found that there are policy options—including upfront investment in clean transportation through incentives and new charging and hydrogen infrastructure—that can help California meet the 2045 decarbonization target while improving health, equity, and the economy. Washington has fallen behind California in EV sales, but is now setting the most ambitious goal in the nation for EVs. There are still practical inputs to be addressed for the target year of 2030 such as investing in charging infrastructure, balancing the equity in job loss in the fossil fuel industry with job creation in the EV industry, and developing a price and strategy for a VMT. 

 

Week of April 26, 2021

What’s Happening – Biden Climate Plan and the American Jobs Plan Are Two Important Pieces of the Puzzle – but do they go far enough? 

President Biden recently announced a pledge for a 50% reduction in greenhouse gas emissions by 2030 (from 2005 levels). This dovetails with his proposed American Jobs Plan that aims to target trillions of dollars in infrastructure investments towards climate objectives, including encouraging electric vehicle usage, supporting public transit, and greening the power sector. The initial budget for encouraging EV manufacturing and purchases will total $174 billion, with the goal of lowering the cost of EVs for consumers and providing more EV charging stations. However, experts are worried that the proposed approximately half a million charging stations will not tip the scales to widespread EV adoption among American consumers. Another part of the infrastructure bill includes a new Clean Electricity Standard, which mandates zero-carbon energy sources be utilized on a national level. Despite the ambitious targets that the American Jobs Plan proposes, it is not a piece of proposed legislation, it is simply a robust plan. It will still require congressional leadership in order to translate this vision into policy. As of now, House Speaker Pelosi is aiming to pass the infrastructure bill by July 4th, which will then go on to the Senate deliberations. 

Here’s our take

Biden’s climate pledge demonstrates the type of ambitious climate leadership that can encourage real policy change. However, on its own, this commitment is insufficient. The real action happens in the policymaking that will help meet these commitments. It is a strategic decision to release this commitment in the context of the negotiations of the American Jobs Plan (AJP), which promises significant energy and transportation investments that will create jobs and simultaneously address climate change. However, the AJP may not go far enough to meet the climate ambitions of the Biden Climate pledge. We focus on two areas for improvement, EV infrastructure, and public transit.  

For electric vehicles, the Biden plan proposes 500,000 new chargers installed nationally by 2030. A recent California climate study led by UC Davis, titled Driving California’s Transportation Emissions to Zero, estimated that in order to meet California’s carbon neutrality goals by 2045, the EV market will demand an increasing rate of annual charger installations each year through 2045, with a peak of about 300,000 Level 2 chargers installed per year by 2031 (and almost 40,000 annual DC Fast chargers). The Biden plan is laudable, but will provide orders of magnitude smaller charging investments than UC researchers claim will be necessary to meet just California’s EV market needs. Thus, the Biden plan may leave a large gap for other sources of public and private investment in EV charging infrastructure. Furthermore, the plan does not distinguish which types of chargers will be deployed. Home chargers are cheaper to install, but many people, including those living in multi-family housing, need a shared charger or public charging options. Researchers at UC Davis also have studied the types of chargers in greatest demand and this research can inform the policy. Also missing from the announcements are specifics regarding whether the plan will strengthen requirements for automakers to sell EVs and fund incentives to buy EVs.

The AJP also calls on Congress to allocate “$85 billion to modernize existing transit and help agencies expand their systems to meet rider demand.” This promise addresses a large repair backlog (estimated at $105 billion). UC Berkeley researchers conducted a study outlining the needs of transit agencies in the U.S. that emphasized the need for systemic change in public transit, one centered in addressing disparities and equity in American cities and towns. The researchers suggest this include reforming transit to be part of an innovative mobility ecosystem, which could include complementary services such as scooters, bikeshare, or private partnerships. More of this kind of big picture thinking will require a restructuring of transportation finance.  

The Biden climate goals and the AJP are exciting steps forward for sustainable transportation, but these plans need more details based on research that will demonstrate how to achieve the goals outlined in the plans. 

Week of April 5, 2021

What’s Happening – New industry coalition pushes for clean hydrogen

The Clean Hydrogen Future Coalition (CHFC) is a recently formed advocacy group made up of various oil, gas, and utility companies. The CHFC recently asked the Biden administration to incentivize low-carbon hydrogen production as part of its new jobs and economic recovery plan. Their proposed “clean” hydrogen techniques include green hydrogen, which utilizes wind and solar power, and  “blue” hydrogen, which uses natural gas and mandates a CO2 capturing system. The CHFC’s stated goal is to lower the costs of hydrogen production while utilizing existing fossil fuels. Many environmental advocacy groups disagree with the CHFC, stating that its proposed hydrogen techniques would not alleviate — and would in some cases exacerbate — environmental and social harms.

Here’s Our Take

The CHFC is predominantly comprised of businesses and industry groups that consume and/or produce hydrogen, which may entangle their interests when it comes to lobbying for federal regulations. Although the Biden administration has not responded to the coalition’s request for policy support, many are looking to the administration for clear guidelines on clean hydrogen production and the risks associated with it. Renewable hydrogen (ie, green hydrogen) has few environmental impacts other than land needed for solar and wind facilities, but hydrogen produced from natural gas with carbon capture and sequestration (CCS) creates a variety of concerns—primarily related to construction of CCS pipeline network and permanence of disposal. As the demand for alternative energy and fuels increases, it will be important to study new clean production techniques, and the many environmental and cost tradeoffs. Significant challenges still remain for the deployment of hydrogen as a transportation fuel, including production, compaction, storage and distribution, as well as use in industrial processes, storage for the electricity grid, and most importantly in fuel cell vehicles. 

ITS-Davis has launched a hydrogen system research project for California that will provide a comprehensive assessment of how the hydrogen system can and should develop in a timely cost-effective manner, including its use in vehicles and industry, and production as both blue and green hydrogen. Getting the transition right will be challenging, given the need to align many pieces and consumer and other stakeholder interests. ITS-Davis will provide its first report from this study during the 2nd quarter of this year. Please see below for other related research from UC Davis Institute of Transportation Studies:

Week of April 2, 2021

What’s Happening – Gasoline consumption may have already reached its peak

The International Energy Agency (IEA) recently released a report suggesting that worldwide gasoline demand may never return to pre-pandemic levels. In its analysis, IEA indicates that long-term shifts in gasoline consumption have occurred as a result of the COVID-19 pandemic, and will continue to impact oil markets in the future. Changes made by local and federal governments to cut carbon emissions will also contribute to declining oil demand. Governments worldwide are exploring sustainable economic recovery strategies including electric vehicle purchase incentives, providing cleaner public transportation options, and reducing overall dependence on oil. 

Here’s Our Take

Global gasoline demand is currently being pulled in two directions. Population and economic growth, especially in emerging economies, is driving consumption up while fuel efficiency, alternative fuels, especially electricity, and improved fuel economy are pushing it down. The IEA may be correctly capturing a declining trend in gasoline use due to lower future growth in car travel, ongoing improvements in fuel economy, and shifts to electric vehicles. But this is still highly uncertain, as we emerge from a pandemic where there may be considerable pent-up demand and there is the possibility of returning to previous global growth trends. Still, if vehicle electrification accelerates in leading economies, prompting shifts to EVs over the next 5-10 years, this could relegate gasoline use to a permanently declining status. It is important to remember that this projection focuses on a peak in gasoline use, not overall oil consumption. Total global oil use, led by diesel fuel (mostly from trucking), jet fuel, and marine oil, along with industrial and petrochemical demand, will probably keep rising for years to come, leading to an overall increase in oil demand until at least 2030. It is important to recognize that even if gasoline consumption has peaked, there is still a desperate need to rapidly transition all of the world’s vehicles–cars, trucks and buses–to lower-emitting forms of energy, while simultaneously improving mobility for billions of people. Policy plays a key role. For additional information, see:

D Sperling, Lew Fulton, and Vicki Arroyo, “Accelerating Deep Decarbonization in the U.S. Transportation Sector,” in America’s Zero Carbon Action Plan: Roadmap to Achieving Net Zero Emissions by 2050, SDSN USA, October 2020, pp. 216-241.

 

Week of February 22, 2021

 What’s Happening – The Cadillac Lyriq and GMC Hummer debut in Super Bowl advertisements

This year’s offering of Super Bowl electric vehicle advertising was a retreat from last year, offering fewer ads from fewer brands. Last year there were ads from Porsche, Audi, and GM (Hummer). This year there were two, both from GM, both featuring the as-yet-to-be-released Cadillac Lyriq (though the also as-yet-to-be-released Hummer EV made a cameo appearance in one.). However, one was as much an ad for GM batteries as it was for EVs; the other was clearly an ad for vehicle automation, not electrification. Maybe the “Norway” ad called out the “electric-ness” of the vehicle better than last year’s ads but only if you already know what “Norway is out EVing us” means.

Here’s Our Take

Advertising is necessary (though it needs to be sustained and pervasive) but it is far from sufficient to encourage people to transition to EVs. Advertising is not going to solve the problem of where to charge or address the range “anxiety” that people have been told they will have if they buy an EV.

Unfortunately, research at UC Davis led by Dr. Ken Kurani, shows no change in consumers’ engagement with EVs over the past 5 years. What else is needed is inspiration for people to care why they would transition to EVs—and not why someone else wants them to make the switch. When people can answer the question, “Why do I want an EV?”, they’ll have the resolve to figure out where they will charge, whether and how an EV might change their vehicle use, and how their total cost of ownership might change.

A few television ads, aired once a year, featuring vehicles that aren’t yet available aren’t enough to encourage a transition to electric vehicles. If we want people to move to electric vehicles, we need to inspire them to create their personal transition as we all build toward a new normal in which buying an electric car is just what we all do.

This story was contributed by the Plug-in Hybrid & Electric Vehicle Research Center of the UC Davis Institute of Transportation Studies.

Week of January 18, 2021

 What’s Happening – California’s new economic recovery plan prioritizes Zero Emissions Vehicles

Governor Gavin Newsom is proposing a $4.5 billion economic recovery plan to kick off the 2021-2022 budget. Alongside helping Californians and small businesses through the COVID-19 pandemic, the proposed recovery plan will dedicate a third of the budget to the transition to zero-emission vehicles (ZEVs) by 2035. Nearly $1.5 billion will be invested in the construction of electric charging and hydrogen fueling stations for ZEVs in the private market and in subsidies for low-income Californians purchasing ZEVs. The funds propose to support the state’s zero-emissions goals while creating and supporting jobs, economic growth, and improved air quality benefits during California’s recovery. The remainder of the budget will be allocated to workforce development and retention, fee waivers and grants for small businesses who had to stop or reduce operations as a result of the pandemic, funds for deferred maintenance of state infrastructure, and the development of more than 7,500 new permanently affordable homes. As the confirmed COVID-19 cases continue to rise in California and bring about economic changes, California’s priority is to provide equitable, broad-based recovery.

Here’s Our Take

The proposed plan, while providing necessary economic relief for Californians and businesses affected by the COVID-19 pandemic, will support Newsom’s executive order to phase out the sales of gasoline powered vehicles by 2035. The executive order, announced in September 2020, is focused on reducing the state’s dependence on fossil fuels and supporting workers and job retention and creation. Researchers at UC Davis estimate that the cost of transition to an all ZEV market by 2035 will require an investment of around $20 billion that then pays off in fuel savings and reduced vehicle maintenance, as well as reduced emissions. $1.5 billion is a significant initial investment to kick-start this transition. However, to sustain the funding for the transition a new, separate funding system may be necessary to provide additional financial incentives for consumers.

Week of January 4, 2021

 What’s Happening – Massachusetts will require all car sales to be EVs by 2035

As part of the commonwealth’s goal of achieving carbon neutrality by 2050, the Governor of Massachusetts has released a plan to dramatically reduce carbon emissions over the next decade. A crucial component of that plan includes a requirement that by 2035, all new light-duty vehicle sales must be zero-emission vehicles (ZEVs). Governor Baker highlights the importance of this action as the impacts of climate change become costlier and increasingly dangerous. These new standards align with the goals of the Transportation and Climate Initiative, a regional collaboration of Northeast and Mid-Atlantic jurisdictions, which would set a cap on vehicle emissions beginning in 2023. Massachusetts recently became one of the first states to officially commit to that cap-and-invest program. Revenues generated from the program will be used to invest in sustainable transportation and EV charging infrastructure.

Here’s Our Take

This pledge made by Massachusetts follows a similar commitment made by California’s Governor Newsom earlier this year. Both states have set the same target of mandating that all new light-duty vehicle sales after 2035 be ZEVs. California is planning to codify this target by extending its existing ZEV mandate, which now goes through 2025, to 2035. To proceed, California will require a Clean Air Act (CAA) waiver from the US EPA or a federal adoption of the same regulation, though it is unlikely EPA or Congress would adopt such an aggressive target.  The waiver, and California’s authority to proceed beyond federal EPA requirements, is widely expected to be granted. This waiver enables not just California to proceed, but also other states who wish to imitate California’s standards, under the authority of section 177 of the Clean Air Act. More than 10 other states have adopted California’s 2025 ZEV mandate for themselves; they and others may choose to follow the new 2035 rules as well, though in practice these new 2035 rules are not likely to be adopted by California’s Air Resources Board until at least mid-2022. 

 

Week of December 21, 2020

What’s Happening – Alliance for Automotive Innovation sets agenda (1 of 2)

The Alliance for Automotive Innovation has set out a series of policy guidelines needed to successfully electrify and automate vehicles in the US. The alliance represents various automakers and suppliers, including the Detroit 3, Volkswagen, Toyota, and other transportation tech companies. Together, they have drafted national objectives essential to encouraging the future of electric vehicles (EVs) and automated vehicles (AVs). The agenda laid out by the alliance includes participation from state and federal governments so there are incentives for both manufacturers and consumers. Investments in a national EV infrastructure is a crucial part of this plan because the proposed policies will accelerate and incentivize the production and sale of electric vehicles.  Another important aspect is the AV policy roadmap, unveiled earlier this month, which recommends policy initiatives and a national pilot program to encourage the development of AVs in the US.

Here’s Our Take 

The Alliance for Automotive Innovation is a recently-combined industry association of both global and US automakers, which reflects the increasingly global vehicle market and supply chain. The Alliance points out that incentives, job programs, and investment in infrastructure will accelerate the electrification of the transportation sector in the US. All of this is true – these are important policy components of the shift to clean transportation. However, missing from their initiatives is the importance of policies to accelerate the sales of electric vehicles, and their investment in advertising and informational campaigns for EVs. Advertising campaigns by the automakers will be crucial to improving consumer awareness of available incentives and the benefits of EVs, and we’ll look to the Alliance to help guide that effort. And while it is no surprise that they don’t highlight sales mandates and performance standards, these policies have been the key factor so far in supporting EV deployment in California and other states.

 

What’s Happening – Automated Vehicle deployment (2/2)

The California Public Utilities Commission is responsible for regulating business models for for-hire transportation. In November, the CPUC moved the Automated Vehicles (AVs) Program from pilot to deployment. The decision makes several important changes to the way AV operators can give Californians rides. The decision starts out by simply setting state goals for AVs, including protecting passenger safety, improving access, and reducing emissions. The decision also gets deep in the specifics of how AVs can operate for commercial service in such a way that protects public safety and the environment. Some details to note include the decision to lift a previous ban on ride pooling and a ban on charging fares, which will allow a market to emerge for AV rides. The decision also expands data collection efforts, sending a clear message to AV operators that the state will keep a close eye on how AVs are integrating into California’s communities. 

Here’s Our Take

The goals established in the new AV program are nation leading. California is the only state in the nation that has set out environmental policy targeting AV emissions (through SB1014), and this decision expands on that policy. It ensures that regulators are committed to a future where AVs leave an equitable and sustainable footprint on our communities by allowing AVs to be shared or pooled. There was a broad consensus of support for pooling among the 20+ parties to the proceeding that AV pooling is necessary for AVs in order to meet traffic and sustainability goals. 

Regarding AV accessibility for people with disabilities, the CPUC made progress, though some believe they could have gone further. Some cities and agencies suggested that the CPUC should require universal design principles from the beginning, requiring all AVs to be equipped for full accessibility for people with disabilities. Instead, the CPUC has chosen a lighter-touch approach, only requiring AV companies to submit reports that ensure that safety measures apply to all passengers, including those with disabilities. This is a move in the right direction, but it is not yet clear if this will result in safety or equivalent AV service for Californians with disabilities, and if this will result in locking in existing designs for vehicles, information disbursal, and payment processing, all of which often fail riders with disabilities.

For more discussion on the nuances of this decision please see this Op-Ed: Pros and Cons of the California Public Utility Commission Decision to Deploy Automated Vehicles.

 

Week of December 7, 2020

What’s Happening – UK Moves EV Target to 2035

The UK has set forth a new goal of banning sales of conventional fossil fuel vehicle sales by 2030 and only allowing zero-emission vehicles from 2035. This is a part of a 10 point plan by the UK to induce what they have been calling a new ‘green industrial revolution’. This is an acceleration of their previous goals to ban sales of fossil fuel cars, which was previously set for 2040. The government has committed to invest around $1.7 billion into the development of battery technologies and infrastructure. The plan includes investment into public and at home charging infrastructure and electric vehicle incentives.

Here’s Our Take

As various countries around the world join the effort to combat their carbon emissions, we are seeing many more national pledges to phase out gas-powered vehicles. We have seen aggressive ZEV transition plans from Norway, and now the UK joins both Sweden and Ireland with their goals of banning the sale of light-duty gasoline and diesel vehicle sales by 2030. The main goal of these sales bans is to decarbonize the transportation sector, to stoke demand for new ZEVs, and encourage manufacturers to make them more available and affordable.

Most importantly these ambitious ZEV targets will require supportive policies if they hope to convince consumers to buy the vehicles. Over the next few years, we will see many more international pledges to reduce transportation emissions, and assess which policies will be most effective in encouraging ZEVs for consumers. The UK plan includes funds for consumer incentives and charging investments. We know from our research that incentives become more important over time as we move from early adopters to mass-market consumers.

 

Week of November 23, 2020

What’s Happening – Auto sales boom in second half of 2020

When the COVID-19 shutdowns hit the U.S. early this year, both analysts and automakers alike understandably expected the major drops in auto sales to last all year — but reality has not turned out that way. A short segment from NPR highlights that the late summer months proved especially profitable for companies like GM, Ford, and Fiat Chrysler, with Fiat Chrysler seeing record sales. Analysts attribute this boom in sales to pent up demand from earlier in the year. Car sales among millennials may be due to increased appeal for traveling in cars for vacations, hiking, and outdoor activities. Many automakers, like GM and others, have announced plans to use these profits to invest in their electric vehicle design and manufacturing infrastructure.

Here’s Our Take

Early in the pandemic, as many countries implemented mandatory quarantines and people traveled less, we saw a reduction in the carbon emissions worldwide, which was seen as a silver lining. However, these climate benefits were short-lived. As car sales rebound faster than predicted, transportation emissions are increasing. In a UC Davis ITS survey from August, researchers found that nearly 37% of respondents reported using buses and public transport less often compared to last year, with an overall net reduction in traveling. These results are understandable given the concerns over sharing space, but nevertheless, a reduction in public modes of transport undermines the pursuit of sustainable mobility. Transit continues to lag behind the renewed surge in car use. A huge sales rebound in vehicles like we’re seeing during the coronavirus pandemic underscores the necessity for clean transportation policy–to enhance shared travel and accelerate the sales of zero emission vehicles.


Week of November 9, 2020

What’s Happening – Airbus plans for a zero emission plane

Airbus has set forth ambitious plans to design a carbon-free hydrogen-fuel commercial airplane by 2035. Because of the time it takes to go from concept to production in the aircraft industry, Airbus states they would need to identify a safe technology within the next 5 years. They will face a number of technical challenges in doing so. Finding enough space (which comes at a premium on aircraft) for fuel tanks on the plane may be a key challenge; hydrogen takes up a lot of space, even when compressed to many times atmospheric pressure. Although using hydrogen as power for aviation has been discussed for decades, the risk (real and perceived) and infrastructure needed to safely conduct trials has been an impediment. Overall, the safety bar will be high, given that the airline industry relies on a very strong safety record.

Here’s Our Take

Although road transport accounts for most of the carbon emissions worldwide, it is important to assess ways to decarbonize in all industries. The aviation sector is a particular challenge because it lacks the variety of decarbonization options available to on-road vehicles due to power and range requirements and the need to counter the weight of onboard energy storage with lift. Batteries may be too heavy and biofuels, while promising, are not yet carbon neutral. Many technical questions remain to be answered. For example, we are curious why Airbus’ initial proposal calls for the hydrogen to be burned in a turbine, instead of converted to electricity in a fuel cell that powers an electric motor. Using hydrogen fuel cells would be much more efficient, and therefore would also require less fuel storage onboard. That said, if Airbus can successfully create a carbon free aircraft, this will be a huge contribution towards transitioning to a carbon-free transportation system.


Week of October 26, 2020

What’s Happening – GMC to Release New All-Electric Hummer

General Motors Company (GMC) took advantage of some advertising time during the 2020 World Series to make a big announcement. They will be producing their first all electric truck—and it’s a big one (literally)—the return of the Hummer, which will be available starting in Fall of 2021. GMC has promised that this new EV will flaunt some new features such as improved off-roading abilities, extremely quick charging times of up to 100 miles range in 10 minutes, and new technology by GMC that involves hands-free driving capabilities. GMC is investing around $2.2 billion towards new efforts in their EV production facilities. However, GMC will face lots of competition from other companies like Tesla, Ford, and Rivian, who already have their own models of all electric trucks. These companies are expected to have lower starting prices for their EVs than the GMC EV Hummer.

Here’s Our Take

As electric vehicles become more widely deployed, automakers have started manufacturing EVs outside of sedans to encompass a larger market share. Companies like Tesla, Ford, Rivian, and now GMC have recognized these patterns and are taking initiatives to move forward with the growing EV market. California’s new clean trucks/vehicles standard is designed to encourage companies to innovate new types of EV, and it’s very encouraging to see automakers start to compete over performance and really try to sell their electric models.

One interesting policy question is if it will weigh over 8500 lbs, like several of the previous versions of the GM Hummer. Over this weight, the vehicle will be a class 2b or 3 truck, and therefore not included in the same fuel economy standards as other personal vehicles. Historically, having these heavy trucks was a way for automakers to avoid improving fuel economy. But since the EV Hummer will have a very high effective efficiency and low emissions (as do all electric vehicles), GM would (somewhat ironically) actually benefit from it being included in their overall fleet accounting if they could. On the other hand, the heavier vehicles would count as clean trucks under California’s new Advanced Clean Trucks rule once implemented—which would give GM a way of meeting this mandate for zero emission trucks in in the 2b/3 truck category.


Week of October 19, 2020

What’s Happening – California’s Rolling Blackouts Point to Need for Grid Resiliency

Nearly one million Californians lost power in the span of two days in mid-August in a series of rolling blackouts, and additional public safety power shut offs were scheduled in 24 targeted counties as a result of red flag weather conditions. Rolling blackouts are a rare occurrence in our modern electrical system, and haven’t occurred in nearly two decades since the last energy crisis. The State of California released a report last week, which found three preliminary root causes of why these rolling blackouts happened. The first of the three was a “climate-change induced heat storm”, which the resource planning process was not prepared for. Second, there was insufficient integration of renewable sources of energy, like wind and solar, which caused lowered available energy capacity during evening hours. Lastly, there were issues with the complex day-ahead market in the state, which allowed operators to sell energy to other states even with a looming crisis.

Here’s Our Take

Extreme weather resulting from climate change was clearly a major contributor to the rolling blackouts, but this report also highlights that the electrical grid is a big part of the problem. As California transitions toward more clean energy sources, such as solar and wind, we need to plan for a grid that is reliable, clean, and resilient. We need to collectively push for more grid flexibility and integration of new resources like demand response, electric vehicles, and adequate storage capacity. Policy-wise, this will mean being prepared to value these services, including from novel options like microgrids.


Week of October 12, 2020

What’s Happening – China Sets Goal for Carbon Neutrality by 2060 (1 of 2)

China recently announced plans to reach carbon neutrality by 2060. This is a significant step beyond their previous goal, which was to peak their carbon emissions by 2030 as part of an agreement with the Obama administration prior to the Paris Climate Accord in 2015. This new carbon neutrality goal exemplifies a recurring trend of leadership being taken by countries around the world to address climate change, and is particularly important because the UN Conference of the Parties was set to meet this year but was canceled due to COVID-19 precautions. The postponement of the UN climate meeting may result in the delay of agreements that need to be made on carbon emissions reduction targets.

Here’s Our Take

As the biggest emitter of carbon dioxide in the world, and a growing economy, China’s commitment is a significant announcement toward reducing global greenhouse gas emissions. In the past, China has also worked with California to develop a New Energy Vehicles program which will support both economies in lowering their carbon emissions. However, despite China’s progress, the country still relies heavily on fossil fuels and continues to construct new coal-fired power plants to meet demand in a developing economy. Coal would need to be retired in favor of more renewable energy sources to reach the stated carbon neutrality goal. Policymakers, scientists, and many others will be watching to see how China’s commitment plays out in their next five year plan, and how they will translate the goal into near-term policy, as called out by John Podesta and David Sandelow in the Financial Times. Now that China has made a commitment to carbon neutrality, the proverbial ball is in the United States’ court.

What’s Happening – Waymo Introduces Driverless Taxi Service, but Policy Lags Behind (2 of 2)

Waymo, a company owned by Google, is introducing the very first publicly available driverless taxi service. After roughly two-years of a strictly controlled trial period, the company is launching service of over 300 minivans through its app, Waymo One, in Arizona. However, they are prioritizing these first rides to already existing customers. Because this transportation alternative didn’t have drivers who could potentially be a risk for covid exposure, it was among the few shared mobility options that weren’t severely affected at the beginning of the coronavirus outbreak back in March. Before that, the driverless cars were only a 5-10% of their rides, but now this fleet of minivans are fully operational within a 50 mile radius in Phoenix, Arizona. Close on their heels is an announcement by Cruise that they are now approved to test fully driverless vehicles in San Francisco.

Here’s Our Take

There has been much speculation over the timing of deployment of completely driverless, or self-driving, vehicles. With technology that could result in life or death consequences, it is of utmost importance that caution and safety measures are prioritized. Waymo and most other driverless technology companies are taking a slow and cautious approach to ensure that their technology is safe and secure for riders. As the development of automated vehicles continues to progress, this technology has the potential to completely reshape the world of transportation. These and other recent announcements give a sense that the pace of deployment may speed up soon. Even with the slow roll out so far, policy lags behind. Researchers at UC Davis have proposed guidelines for states to enact safe, equitable, and sustainable AV policy.

Developed by the Policy Institute in partnership with the Institute of Transportation Studies at UC Davis.


Week of October 5, 2020

What’s Happening – Consumer Reports Study Highlights Maintenance Savings from EV Ownership

In a new report by Consumer Reports, researchers have found that owners of EVs are spending half as much on repairs and maintenance costs compared to those with gas-powered vehicles. This analysis confirms the long-held expectation that because EVs have fewer parts than traditional gas-powered cars, the maintenance costs would be significantly less. According to one of the authors of the study, senior transportation policy analyst Chris Harto, the savings for the EV owners are “going a long way to offset the upfront costs”, which is often a monetary obstacle that many consumers consider.

Here’s Our Take

As the deployment of EVs has gone forward and we learn more, each year the consensus estimates the benefits of electrifying transportation, reduced vehicle cost, and lowered battery price. Owners of EVs enjoy the advantages of saving money on both fuel and maintenance, in addition to the more general benefits that EVs have in reducing harmful pollution than conventional cars emit. This study also shows how EVs can benefit lower-income households who may be struggling with unexpected car repair bills and any others who are seeking greater reliability in a vehicle. So far, cost-benefit analysis of policies hasn’t included the potential benefits of cheaper maintenance — hopefully future iterations can do so.

Developed by the Policy Institute in partnership with the Institute of Transportation Studies at UC Davis.

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