Viewpoint: California leads national ZEV charge

Zero-emission vehicle (ZEV) mandates are becoming an increasingly popular policy instrument to achieve greenhouse gas (GHG) emission reductions in states across the country, and they eventually may become a federal strategy under president-elect Joe Biden's administration.

Unsurprisingly, California led the charge in 2020 toward greater electrification of the transportation sector as it took a number of steps to wean itself off conventional internal combustion engine cars and trucks.

The state reached agreements with Honda, BMW, Ford, Volkswagen and Volvo to retain fuel-efficiency standards established under then-president Barack Obama. Those standards were then relaxed under President Donald Trump. The agreement calls for the companies to sell model 2021-26 model year cars and pickups, nationally, that get more than 50mpg and cut GHG emissions by an average of 3.7pc/yr over five years.

The California Air Resources Board (ARB) also established its Advanced Clean Trucks standard , a first of its kind mandate requiring that by 2045 all medium- and heavy-duty trucks sold in the state be ZEV models

Then California governor Gavin Newsom (D) followed up with the nation's most ambitious plan yet when he signed an executive order directing ARB to require that all in-state passenger cars sold be ZEV models by 2035, joining 15 nations that have committed to phasing out gasoline-powered vehicles.

Meanwhile, the state continued to make progress on building out the electric charging infrastructure that will be necessary for such a transition, including approving major investments by utilities in new charging stations. California accounts for nearly half of all US electric vehicle sales, with more than 726,000 electric cars on the road as of September.

California's transportation sector accounts for 41pc of the state's GHG emissions, more than any other economic sector, which is why it is using a host of policies to reduce the use of conventional gasoline and diesel in the state. For example, the Low-Carbon Fuel Standard (LCFS) awards compliance credits for the use of electricity as a transportation fuel and requires utilities to use LCFS credit revenue to fund electric vehicle rebates.

The state's strong push for electrification has pitted regulators at ARB and other agencies against petroleum and biofuel industry advocates who say that California is picking winners and discounting viable low-carbon alternatives.

But California's efforts have also made it a standard-bearer for other states' electrification initiatives. That is, in part, due to its size and market influence, but California also has unique authority under the federal Clean Air Act to set its own vehicle emissions standards, which other states are free to adopt.

In July, a coalition of more than a dozen states and the District of Columbia agreed to work with California on developing their own version of its Advanced Clean Trucks mandate.

Some of those states are also looking to go beyond trucks and adopt broader ZEV mandates and incentives.

In October, New Jersey governor Phil Murphy (D) said he wants his state to consider requiring the sale of only zero-emission vehicles within 15 years.

New York governor Andrew Cuomo approved $750mn in spending to incentivize the building of charging infrastructure, even as a growing chorus of New York policymakers are pushing to extend ZEV purchasing incentives and mandates .

Oregon regulators have proposed electrification strategies including using its LCFS program to finance ZEV infrastructure development and rebates for low income individuals and under-served communities.

Nevada governor Steve Sisolak (D) recently presented a plan to adopt an LCFS and ZEV standards for passenger and heavy-duty vehicles in line with California's mandates. The state is in the middle of a rulemaking process to evaluate standards for cars and light-duty trucks that would begin in 2025.

Such states could see their efforts accelerated if Biden follows through with an agenda that calls for setting new fuel economy standards that would lead to the sale of only electric light- and medium-duty cars and trucks.

Biden has called for installing 500,000 new charging points by 2030. And he has promised to restore a US federal EV tax credit and to inject $5mn into research and development for electrification.

By Solomon Moore

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