CUB Supports Transportation Electrification - HB 2165
Posted on February 26, 2021 by Samuel Pastrick
Tags, Energy
By electrifying transportation, Oregon can reduce climate pollution and cut utility costs. Utility benefits of investing in transportation electrification infrastructure extend to everyone, not just those who can afford electric vehicles. During the 2021 legislative session, CUB supports House Bill (HB) 2165.
HB 2165 will benefit electric utility customers by:
- Dedicating funding for electric utility investments in transportation electrification programs and infrastructure, such as charging facilities, with an emphasis on low- and moderate-income customers;
- Improving evaluation of electric utility transportation electrification investments at the Oregon Public Utility Commission (PUC); and
- Expanding and improving the equity of Oregon’s electric vehicle rebate programs.
Dedicate Funding for Electric Utility Transportation Electrification (TE) Investments
HB 2165 will require annual TE investments of no less than .25 percent of annual revenues from Oregon’s two largest electric utilities, Portland General Electric (PGE) and Pacific Power. CUB expects this number to be in the range of $8-10 million per year. The bill dedicates half of these funds toward customers with low and moderate incomes.
Investments in TE infrastructure and programs benefit all utility customers. Charging electric vehicles (EVs) generates revenue for electric utilities that exceeds the cost of the TE investments. That revenue can be used to offset other costs of maintaining utility systems. Lowering utility system costs means lower bills for all utility customers, regardless of EV ownership.
Improve Evaluation of Electric Utility Transportation Electrification (TE) Investments
The PUC’s ability to evaluate electric utility investments in TE must improve. The number of electric vehicles is growing, and regulated utilities are obligated to meet electricity demand. Utility investments in TE programs and infrastructure need to be prudent and fair. PGE and Pacific Power already submit regular TE plans to the PUC. CUB carefully reviews and comments on these plans, but the PUC will benefit from clearer legislative direction on evaluation.
Existing law has constrained the PUC’s ability to evaluate electric utilities’ TE investments. While Governor Kate Brown’s March 2020 Executive Order on Climate Action took a step toward clarifying the PUC’s authority on this topic, legislative action is still appropriate. HB 2165 clarifies the PUC’s authority to ensure that TE infrastructure and program investments from PGE and Pacific Power meet system demands while maximizing benefits to all customers.
Expansion and Equity for Electric Vehicle (EV) Rebate Programs
Oregon has two rebate programs to encourage EV purchases: the Clean Vehicle Rebate and the Charge Ahead Rebate. Both these programs currently provide a cash incentive of up to $2,500 for qualifying customers and vehicle purchases. Customers can apply the Clean Vehicle Rebate only to new vehicles. The Charge Ahead program targets customers with low incomes and the rebate can be used for both new and used vehicles.
HB 2165 extends both rebate programs by extending their funding timelines. The bill will increase the Charge Ahead Rebate to $5,000 and streamline eligibility. HB 2165 also increases Charge Ahead’s outreach to Black, Indigenous, and other People of Color and expands eligibility for certain community service organizations. These improvements will allow more Oregonians to access and use rebates to purchase EVs.
Good for Customers and the Climate
Transportation electrification is not only good for customers’ wallets; it also helps drive (pun intended) down greenhouse gas emissions. The transportation sector is responsible for more climate pollution than any other sector of Oregon’s economy. If Oregon is to meet ambitious state emission reduction targets, TE must increase rapidly in the coming years.
Understanding that transportation electrification benefits customers and the climate, CUB’s goal is to ensure that our major utilities make smart and equitable investments. CUB supports HB 2165 during the 2021 Oregon legislative session.
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09/05/22 | 1 Comment | CUB Supports Transportation Electrification - HB 2165