Set up regulation and support for the development of infrastructure

 
This is crucial for electric mobility charging infrastructure as well as for the digitalization of cities, homes and industries.
Norms and standards guaranteeing the interoperability of charging systems and the development of vehicle-to-X technologies should facilitate consumer choices and promote flexibility. Effective standards on security and transmission protocols between IoT systems should address the privacy and cybersecurity concerns of citizens. Existing or planned public policy examples which demonstrate this concept:

Europe: Provisions on e-mobility infrastructure under the Energy Performance of Buildings Directive (EPBD)

The EU’s Energy Performance of Buildings Directive (EPBD) was amended in 2018 to support deployment of recharging infrastructure in car parks of residential and non-residential buildings.
Among other provisions to boost energy performance of buildings and decarbonise the EU building stock, under the EPBD EU Member States will be obliged to guarantee that new buildings and existing buildings under major renovation respect minimum requirements on recharging infrastructure.

The specific provisions promoting the roll-out of e-mobility in buildings include:

  • Non-residential buildings with more than ten parking spaces (with certain conditions): Member States shall ensure the installation of at least one recharging point and ducting infrastructure (conduits for electric cables) for at least one in every five parking spaces to enable the installation at a later stage of recharging points for electric vehicles.
  • Non-residential buildings with more than twenty parking spaces: Member States shall determine requirements for the installation of a minimum number of recharging points by January 1, 2025.
  • Residential buildings with more than ten parking spaces (with certain conditions): Member States shall ensure the installation of ducting infrastructure (conduits for electric cables), for every parking space to enable the installation, at a later stage, of recharging points for electric vehicles.
  • Member States shall provide for measures in order to simplify the deployment of recharging points in new and existing residential and non-residential buildings and address possible regulatory barriers, including permitting and approval procedures.
  • Member States shall consider the need for coherent policies for buildings, soft and green mobility and urban planning.

The EPBD revision is being transposed to national legislations. EU Member States are now required to transpose the EPBD into national legislations before March 2020. This is part of a broader effort in the European Union to promote clean mobility and electric vehicles, which constitutes an important component of a clean energy transition based on energy efficiency measures, alternative fuels, renewable energies and innovative energy flexibility management solutions.

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Poland: Electromobility Development Plan

The Polish Government (Ministry of Energy) has adopted a number of policy instruments designed to accelerate electrification of transportation:

  • National framework for alternative fuels infrastructure development policy (2017)
  • National Electromobility Development Plan (2018)
  • The Act on Electromobility and Alternative Fuels (2018)

The Act was specifically introduced to subsidize the purchase and support the deployment of alternative fuel vehicles. Its main provisions are to:

  • Provide subsidies for the purchase of new alternative-fuel vehicles, including electric, hydrogen, LNG and CNG. Depending on the purpose of the vehicle and its weight, the subsidy may be up to 30% of the purchase price, or PLN 36,000-200,000. For passenger cars, the value of the vehicle must be less than PLN 125,000 to be eligible for the subsidy.
  • Provide subsidies for alternative fuel charging stations financed from low-emission fund.
  • Provide support for use of alternative fuels in public transport, for example through provision of electric buses and trolleybuses, by covering up to 50% of purchase price with a maximum of PLN 1 million and PLN 700,000 respectively.
  • Regulatory solutions are analyzed by the government on an ongoing basis and adjusted to market changes (subsidy levels are currently being analysed and will be reduced).

Financing for the application of the Act is from the low-carbon transport fund (FNT). The management of the FNT was entrusted to the National Fund for Environmental Protection and Water Management. The total costs are expected to be PLN 10 billion over a 10 year period.

With these policy measures, the government expects there to be:

  • 600 thousand electric vehicles (battery and plug-in hybrid) in Poland by 2030 (up from about 8500 in 2019)
  • 400 public-use fast charging stations and 6000 public-use regular stations by 2020

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USA: Example State Legislation to Support Electrification Strategies

In 2019, the American Wind Energy Association (AWEA) issued a position paper entitled A Shared Future: Electrification and Renewable Energy featuring Example State Legislation to Support Electrification Strategies.

This policy paper, with its sample Grid Modernization and Consumer Benefit Act, is intended to provide tools to encourage electrification, specifically of transportation. It is a resource for electricity providers, state legislators, regulators, and other stakeholders as they develop their electrification strategies and enable critical infrastructure investments. It provides key points for modernizing state electricity system infrastructure to accelerate end-use benefits for consumers

As of 2019, some concrete actions which reflect the spirit of sample legislation are:

  • A legislative package of four federal bills was tabled in 2019 to promote development of zero-emission vehicles and infrastructure (national strategic committee, financial incentives, etc.)
  • The bipartisan Vehicle Innovation Act of 2019 to support research to decrease fossil fuel emissions from vehicles was introduced in the US Senate
  • Six states (Colorado, Maryland, Michigan, Ohio, Oregon, Pennsylvania) and two policy maker associations (NARUC (Regulator association promoting policy to states) and NCSL (State legislator association promoting policy to states)) have adopted some or all of the principles.

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USA: Policy Principles for Grid Modernization

In the USA, two leading organizations are paving the way for grid modernization by defining policy principles and tracking progress.
The first of which is the GridWise Alliance, a membership-based organization that promotes policies to transform the electricity grid. In 2017 it published Guiding Policy Principles, a series of overarching principles regarding grid modernization.

The purpose of the document is to provide federal and state legislators and regulators information on the critical need to modernize the American electricity system to ensure continued economic growth and competitiveness and achieve system reliability, resilience, security, efficiency, sustainability, and affordability. As of the end of 2018, 31 states had adopted some or all of the principles. These include California, Illinois, Maryland, Arizona, Oregon, Texas, New York, Nevada, Washington D.C., Minnesota, Michigan, Massachusetts, Georgia, Colorado, Hawaii, Delaware, Pennsylvania, Ohio, Rhode Island, Vermont, Missouri, Washington, North Carolina, New Jersey, Virginia, Maine, Oklahoma, Connecticut, Florida, Indiana, New Hampshire.

The GridWise Alliance also publishes an annual Grid Modernization Index as a benchmark of US states on a wide range of grid modernization policies, practices and investments, including those recommended by the GridWise Alliance.

Another group that is active in this field is North Carolina University’s NC Clean Energy Technology Center which publishes a quarterly report and annual summaries on grid modernization policy developments. This report aims to inform stakeholders by cataloguing on a regular basis proposed and enacted legislative, regulatory and rate design changes affecting grid modernization.

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USA: NARUC Resolution Supporting Infrastructure Modernization Programs

In 2018, the National Association of Regulatory Utility Commissioners (NARUC) adopted the CI-1/EL-2 Resolution Supporting Infrastructure Modernization Programs. NARUC is the national association representing the State Public Service Commissioners who regulate essential utility services in each American State. The purpose of this resolution is to provide impetus to state legislators to put into place grid modernization programs.

More specifically, NARUC resolved:

  • To encourage regulators and industry to consider sensible programs aimed at accelerating investments in electric system infrastructure to help modernize and protect the nation’s electric system,
  • That State commissions should explore and examine alternative rate recovery mechanisms to accelerate the modernization, replacement, and enhancement of the nation’s electric system.

The overall goal is to inspire positive actions by state legislators working with the regulators to adapt and adopt the policy for infrastructure modernization into their own jurisdictions. For example, the State of Pennsylvania passed Act 58 in 2018 that created the flexibility for alternative rate-making proposals to support grid modernization, one of the key points in the NARUC Resolution.

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USA: Transportation Electrification Accord

The Transportation Electrification Accord was published in 2017 to set forth eleven policy principles that outline how transportation electrification can be advanced in a manner that benefits all utility customers and users of all forms of transportation, while supporting the evolution of a cleaner grid and stimulating innovation and competition.

The main objective of the Accord is to educate policymakers on how to advance electric transportation in a manner that provides economic, social and environmental benefits. It has been signed by over 100 organizations and businesses that commit themselves to the advancement of an equitable, prosperous and electrified transportation future. Signatories include prominent car manufacturers, environmental groups, health associations and utilities, and range in scope from local to international.

As of 2019, several concrete actions which reflect the spirit of the Accord have been put into place in the USA:

  • Legislative package of four federal bills tabled in 2019 to promote development of zero-emission vehicles and infrastructure (national strategic committee, financial incentives, etc.)
  • Vehicle Innovation Act to support research to decrease fossil fuel emissions from vehicles
  • Six states (Colorado, Maryland, Michigan, Ohio, Oregon, Pennsylvania) and two policy maker associations (NARUC (Regulator association promoting policy to states) and NCSL (State legislator association promoting policy to states)) have adopted some or all of the principles

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Italy: Tax exemptions for installation of charging points

In 2019, the Government of Italy granted tax exemptions for the installation of private electric vehicle charging points for both home charging and companies, in order to encourage electric vehicle adoption.

Specific provisions of the measure are:

  • Tax exemption of 50% of the installation costs, to be recovered in a 10-year period.
  • Period of application: 2019-2021

The measure will help Italy to reach 6,500 recharging points by 2020, a significant increase from the 2,900 recharging point in 2019. In this way, Italy will comply with the European Directive on Alternative Fuels Infrastructure and the European Effort Sharing Regulation on binding national GHG emission reduction targets in sectors such as transportation, building and waste management.

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