Advanced Energy Perspectives

Last summer, New York passed the Climate Leadership and Community Protection Act (CLCPA), which adopted the country’s most ambitious climate targets, including 100% carbon-free electricity by 2040 and economy-wide, net-zero carbon emissions by 2050. With transportation as New York’s largest emission sector, accounting for nearly one-third of the state’s greenhouse gas (GHG) emissions, transportation electrification is an absolute necessity for meeting those goals. Several years ago, New York set a goal of deploying 850,000 zero-emission vehicles by 2025. Now, thanks to a big new incentive program, the Empire State is going to get ready to charge up all those electric vehicles.

Under the Sisolak Administration, Nevada has emerged as one of the states leading this country’s transition to a clean electricity grid. This week, it becomes a leader in the electric transportation transformation as well. That’s because Gov. Sisolak announced a Clean Cars Nevada initiative to give Nevadans more options for low- and zero-emission vehicles when they go shopping for a new car or truck. By initiating the process (pursuant to Section 177 of the federal Clean Air Act) to adopt more stringent emissions standards for vehicles than those in place nationally, Nevada will also set itself up as the next hot market for electric vehicles (EVs) and related charging station development.

Before the COVID-19 pandemic swept the states, California boasted over half a million advanced energy jobs. In just a few months time, the state lost more than 100,000 of those jobs. As policymakers now grapple with plugging a $54 billion budget deficit, keeping local communities afloat, and upholding the state’s marquee policies, the stakes could not be higher. Given uncertainty around any federal stimulus package, AEE is providing California decision makers with recommendations for actions they could take now to move the state to economic recovery, with advanced energy at its center. That’s because advanced energy is  a tried-and-true engine of economic growth, in California most of all.

Recently, the United States experienced a shortage of essential medical supplies needed to treat an influx of patients with COVID-19, including respirators, gloves, face shields, gowns, and hand sanitizer – a shortage that drew national attention to the subject of supply chains. Interconnected, global supply chains can present challenges, but they also present opportunities for companies to scale their businesses by tapping into the global marketplace. That is especially true for markets that are on the rise, like the one for electric vehicles (EVs) and supporting charging infrastructure. The emerging supply chain for these products offers the prospect of business and job growth that can be seen on the local level in places with strength in the required skill sets. And that’s exactly what we found in our recent study of the EV supply chain in Pennsylvania.

Automakers are particularly vulnerable to economic downturns; just think back to the 2008-2009 financial crisis. So it should come as no surprise that EV sales, along with all others, are expected to drop in the coming year due to the global COVID-19 pandemic. But in the long term, nothing has changed. Manufacturers are gearing up their EV offerings, EVs continue to grow their worldwide market share, and gas-powered vehicles have hit their peak. What’s next, especially in the United States, is for the charging station build-out to match the coming demand – and realize the job gains and global competitive advantage that could come from a federal charging-station investment.