Category Archives: Economic Development

Drive Electric Maine- Love It’s What Makes an EV, an EV.

 

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New England, particularly northern New England states like Maine, has been late to the party called “electric vehicles”.  As a native New Englander, I can think of many reasons for this tentativeness. We tend to be cautious, wary of new ideas. Given our economy we aren’t prone to fads.  We just don’t throw money at a product because it enhances our status.  It has to prove itself.   EVs are still considered new.  They cost a bit more, up front.  We can’t determine whether they are a real, or something worth serious interest. The media doesn’t help much in offering objective analysis (probably the case for media anywhere nowadays).  We have concerns over cold-weather impacts on their batteries.  We have concerns about their range.  We just don’t see many of them in the wild so we don’t’ personally know many people who drive them. We wonder how we’re supposed to keep them charged- we don’t see much public charging station infrastructure.  In truth, these are all reasonable concerns.  However, once any new technology proves itself here, we become true believers and it becomes part of our lives.  Think about how the Suburu brand has captured New Englander’s loyalty. Love- it’s what makes a Suburu, a Suburu.

Last week was a watershed moment in Maine’s journey toward transportation electrification. We convened a large group of energized stakeholders from all walks interested in putting more cars on the road.  The group included our largest electric utilities (Central Maine Power, Emera Maine), public health folks (American Lung Association of the Northeast), large employers (Delhaize/Hannaford), Maine Innkeepers Association, Green Campuses, local governments, including Portland and South Portland, and, perhaps most importantly, the Governor’s Energy Office and critical state agencies interested in growing opportunities to electrify Maine’s major travel corridors.  These are folks who drive EVs, who have a specific interest in their benefits, who see the potential for transforming Maine’s economy, environment and communities by weaning us off oil.

We will be focusing on impactful projects that raise visibility and consumer deployment of this technology.   In particular, we want to grow workplace charging, create charging opportunities for tourists and commercial businesses, and assist utilities in pilot projects and outreach.  By keeping the emphasis on projects, not policy, we want to thread the political needle and leverage private investment as much as we can to show this technology can stand on its feet and meet the needs of consumers while helping our communities breathe cleaner air, save money, and keep Maine’s environmental beautiful for future generations.  While these are lofty aspirations, Maine has great people who care about each other and our natural beauty- these are really our best assets.

Here is our current list of stakeholders:

Acadia Center

American Lung Association of the Northeast

Avangrid Foundation

Central Maine Power

City of Portland

City of South Portland

E2Tech

Conservation Law Foundation

Delhaize/Hannaford

Electric Mobility NE

Emera Maine

Governor’s Energy Office

Greater Portland Council of GOvernments

Greater Portland Convention & Visitors Bureau

Green Campuses

International Brotherhood of Electrical Workers

Maine Auto Dealers Association

Maine Clean Communtiies

Maine Department of Environmental Protection

Maine Department of Transportation

Maine Innkeepers Association

Maine Turnpike Authority

Natural Resources Council of MAine

ReVision Energy

Sierra Club

Sunrun, Inc.

University of Maine

What will be our definition of success? Getting 10,000 cars with plugs on our roads by 2020? Electrifying our I-95 corridor with DC Fast Chargers for our local communities and visiting tourists ?  Creating a dynamic public charging space in our major cities?  Focusing on helping our large employer workplaces get chargers?

Or perhaps our success will be achieved when we re-define what our love of transportation means.  Love, what makes an EV, an EV.  No smoke, no gas, no irreversible climate change.  Does your Suburu do that? Then maybe you should ask them what love really means.

Time to Join the Party: Early Data on Plug in Adoption and Industry Investment

By choosing to employ regulatory streamlining and supportive policies and incentives on consumer deployment and in-state industry development, Oregon and California now have evidence that those dollars leverage high economic value.

In late 2009 in Oregon, a few EV oriented businesses, manufacturers and professionals created an industry cluster in a third floor conference room of the Portland Development Commission, and concocted a strategy to harness state funds to promote its development.   Now called Drive Oregon, the group convinced the Oregon Innovation Council of its value and successfully lobbied state legislators to invest $1.2m of state funding at a time when the state’s budget left many lawmakers on the retreat, cutting public safety measures and teacher salaries.  The pitch, that Oregon needed to have a means of fueling its EV industry cluster’s growth and have a conduit for federal and private grants funding alternative fuel technologies, was persuasive but not without great uncertainty.  Should Oregon gamble on using state funds to fuel development in a sector that many, even today, dismiss as doomed to fail?  Recently the Northwest Economic Research Center (“NERC”) released the results of its first study designed to define what companies constitute Oregon’s EV cluster and measure its strength and economic impacts.

Tom Potiowsky, director of NERC and former Oregon state economist, concluded that: “Our research indicates that the electric vehicle industry generates gross economic activity of $266.56 million, total value added of nearly $148 million and provides more than $89 million in total employee compensation.  The industry continued to grow during the Great Recession, while other transportation industries suffered enormous losses.”

NERC estimated that EV economic activity created a ripple effect, adding 1169 jobs to the economy in addition to the 411 full-time EV jobs.  Tax revenue to the state amounted to $11.9m and $20.8m to the federal authorities.   More importantly, in a little over a year DriveOregon has gotten over forty businesses to join the cluster and leveraged over $2.5 million dollars to date through its matching grants program.

Why has the EV industry taken root in Oregon?  Sophisticated local demand may explain some of this phenomena, a population given to a willingness to try new things for the benefit of themselves and the planet.    Oregon’s skilled workforce, supportive legislative and regulatory policy atmosphere, and a diffuse EV industry structure involved in manufacturing of different types of EVs, parts and components all contribute to its health. But it is more.  It took impassioned individuals and courageous political leadership.

What of the other side of the coin- deployment? What benefits might be achieved through a state’s aggressive measures to foster consumer purchasing of PEVs?

In the UCal-Berkeley study released in September 2012, titled, “Plug-In Electric Vehicle Deployment in California: An Economic Assessment”, focused on providing an economic assessment of the state’s accelerated deployment of PEVs.   Its author, David Roland-Holst, who employs a long-term economic forecasting model, concludes that:

-Light duty vehicle electrification can be a catalyst for economic growth, contributing up to 100,000 additional jobs [in California] by 2030.

-On average, a dollar saved at the gas pump and spent on other goods and services that households want creates 16 times more jobs. (Yes, read that again).

-The majority of the new demand financed by PEV fuel cost savings goes to in-state services.

Individual Californians gain from economic growth associated with fuel cost savings due to EVs, whether they buy a new car or not. Average real wages and employment increase across the economy and incomes grow faster for low-income groups than for higher-income groups.

(Emphasis added.)

In essence the type of savings achieved through PEV adoption are quite different than those expenditures on the fossil fuel supply chain, creating stronger multiplier effects on state product and job creation and providing a positive net value to those states that adopt them.  PEV-related transportation efficiency also stimulates job creation across all economic activities, not just in the  “green collar” sector, through this expenditure shifting phenomenon.  Quite simply, “a dollar saved on traditional energy is a dollar earned by 10-100 times as many new workers.” (p.17)

The importance of these studies should not be underestimated.  They add yet another analytic block to the foundation supporting the business case for society’s investment in PEV technology and adoption and, perhaps most importantly, for the ongoing political support of policies designed to assist its rapid ascent.  When read in conjunction, these studies make clear that we have ever more to gain by the acceptance of EVs then “just” GHG reduction, balancing the grid, and a better driving experience.   We have local jobs to gain and, with them, hope for a sustainable energy future.  For California and Oregon, the gamble appears to be paying off.  Can other parts of the country afford to not to invest in a technology sector whose odds get more favorable all the time?