PSC Approves 'EV Make Ready' Initiative to Accelerate Deployment of More than 50,000 Charging Stations by 2025 and Increase Number and Range of Electric Vehicles
Program to Stimulate $1.5 Billion in New Investment and Provide More Than $2.6 Billion in Consumer Benefits and Economic Opportunities
$206 Million Set Aside to Benefit Low-Income and Disadvantaged Communities Including $85 Million to Fund Three Innovative Clean Transportation Prize Competitions
$48.8 Million of Volkswagen Settlement Funding Allocated to Boost Use of Clean Public Transit and School Buses, EV Charging Stations
Supports Commitment Announced Earlier this Week by New York State, 14 States and D.C. to Work Collaboratively to Accelerate the Electrification of Buses and Trucks
Announcements Further New York State's Leadership in Decarbonizing the Transportation Sector by 2050
Governor Andrew M. Cuomo today announced a package of major clean transportation initiatives, including a "Make Ready" order approved by the New York State Public Service Commission to advance New York's commitment to accelerate its transition to cleaner mobility. Today's announcements support Governor Cuomo's nation-leading plan to decarbonize the transportation sector and reduce overall statewide carbon emissions 85 percent by 2050, as well as the recent collaborative announcement by New York, 14 other states and Washington D.C. to ramp up the electrification of diesel buses and trucks by 2050.
"New York is leading the nation in efforts to combat climate change and reimagine our power systems with innovative clean energy policies and now we are taking major steps to decarbonize vehicles, including light and heavy-duty trucks and buses," Governor Cuomo said. "Through initiatives like the 'EV Make Ready' program, we are building out the infrastructure that is necessary to support the electrification of our transportation sector, while ensuring that every New Yorker can share in the benefits of this transition including cleaner air and new, well-paying jobs."
The transportation sector is responsible for the largest contribution to greenhouse gas pollution in the U.S., with these emissions increasing more than any other sector over the last 30 years. Encouraging accelerated, forward-thinking development of charging infrastructure will provide New Yorkers with more than $2.6 billion in net benefits and supports the achievement of the State's transportation electrification and clean energy goals. Electrifying transportation will allow New Yorkers to power their vehicles with cleaner energy sources, with renewables representing a growing portion of the state's electricity supply. Thoughtful siting of charging infrastructure will support reduced installation costs, improve site host-acceptance and maximize use from drivers.
The EV Make-Ready Program will be funded by investor-owned utilities in New York State and creates a cost-sharing program that incentivizes utilities and charging station developers to site electric vehicle charging infrastructure in places that will provide a maximal benefit to consumers. The PSC order caps the total budget at $701 million and will run through 2025, with $206 million allocated toward equitable access and benefits for lower-socio-economic and disadvantaged communities which will also be eligible for a higher incentive supporting up to 100 percent of the costs to make a site ready for EV charging.
The Long Island Power Authority, with its service provider, PSEG Long Island also announced a goal to support 180,000 new EVs on Long Island with 4,650 new EV charging ports by 2025, beginning with a proposed 2021 investment of $4.4 million in make-ready infrastructure.
In addition to the Make Ready funding from investor-owned utilities, the New York State Department of Environmental Conservation is allocating $48.8 million from the Volkswagen diesel emissions settlement to transit bus and school bus operators and EV charging station owners to advance local growth of electric vehicle infrastructure, clean public transportation and transit options, and electric school buses.
Today's Commission action will provide funding for the infrastructure required to support more than 50,000 Level 2 charging plugs, capable of charging a vehicle at least two times faster than a standard wall outlet, and 1,500 public direct current fast charger stations in New York in recognition of the essential role that public fast charging stations will play in the near term to allay range anxiety. Encouraging private investment in publicly accessible fast-charging stations will stimulate the EV market in New York over the coming years.
The work to implement the program will primarily be undertaken by the State's investor-owned utilities, whose employees — which include members of the Utility Workers Union of America and the International Brotherhood of Electric Workers — are paid at or above a prevailing wage. Where applicable, NYSERDA will require prevailing wages be paid to workers regarding the prize programs that it is implementing.
Under Governor Cuomo's leadership, New York is also boosting options for fleets to tackle the challenges of reducing the carbon emissions they produce, particularly in disadvantaged communities. As part of the Governor's State of the State commitment to electrify transit buses for five major transit operators across the state, the New York Power Authority and NYSERDA will partner with these transit operators and provide up to $1 million to study the challenges of zero emissions bus fleets and identify solutions for electrification including bus options, charging needs and other logistical challenges.
To further accelerate the electrification of light-, medium-, and heavy-duty vehicle fleets and in support of the multi-state medium- and heavy-duty transportation electrification MOU announced this week, the Commission has also directed the utilities to create a Fleet Assessment Service that includes site feasibility and rate analysis, to aide fleet owners in identifying cost- and time- saving synergies. The deployment of charging infrastructure that will occur under the order will enable access to public charging for EV adopters, which coupled with innovative rate designs for home charging to promote off-peak charging, will maximize utility system efficiency. The need to make rate design modifications will be reviewed as the EV initiative moves forward.
New York's comprehensive commitment to the expansion of clean transportation options is positioning the State as a national leader in EV deployment and the continued technological advancement of charging infrastructure. Other initiatives and programs designed to achieve Governor Cuomo's Charge NY goal of 10,000 EV charging stations by the end of 2021 and 850,000 zero emission vehicles by 2025 are already underway. Under NYSERDA's Drive Clean Rebate program, more than $35 million in rebates have now resulted in over 25,000 electric vehicle purchases as of June of this year.
In addition to the initiatives to electrify vehicles and truck fleets benefiting environmental justice and disadvantaged communities, the Commission has also directed NYSERDA to propose an integrated competition, with up to $85 million of the EV Make Ready total budget, designed to directly address emissions, equity and electrification in communities near high-density and congested streets and public highways. Three prize areas will focus on supporting clean transportation options which benefit lower socio-economic and environmental justice communities:
· The Environmental Justice Community Clean Vehicles Transformation Prize, a $40 million program focused on reducing harmful air pollution in frontline communities and creating transportation "green zones" across New York State;
· The Clean Personal Mobility Prize, a $25 million program soliciting innovative and high impact approaches that enable access to clean transportation services for disadvantaged and underserved communities; and.
· The Clean Medium- and Heavy-Duty Vehicle Innovation Prize, a $20 million program designed to achieve direct benefits; allow concrete investigation of opportunities, costs, and benefits; and prove out innovative and high-impact approaches to medium- and heavy-duty electrification that can be replicated at scale, including for "last-mile" solutions, one of the fastest growing emissions sources in this class of vehicles.
As part of the state's commitment to EV infrastructure, the New York State Department of State is collaborating with the New York Power Authority to significantly expand deployment of DC fast chargers in downtown communities through the Governor's Downtown Revitalization Initiative. DOS and NYPA will work with local governments and key stakeholders to identify communities participating in the DRI that may be interested in hosting public fast chargers. The first downtown chargers will be installed through this program fall of 2021. In addition, through its EVolve NY initiative, NYPA has recently installed two new DC fast charger stations in key Mid-Hudson locations and is working with the New York State Thruway to upgrade its plaza charging stations.
Commission Chair John B. Rhodes said, "We can and must rapidly electrify our transportation system in order to achieve a carbon-neutral economy, under Governor Andrew M. Cuomo's leadership. With these smart investments, we dramatically increase the number of centrally located and easily accessible charging stations, benefiting electric customers and reducing barriers to clean transportation for all New Yorkers."
Department of Environmental Conservation Commissioner Basil Seggos said, "New York is setting the bar for state-led action on climate. To achieve the State's nation-leading goals of reducing greenhouse gas emissions, New York must reduce emissions from the transportation sector, now the largest source of climate pollution. Today's announcement is proof positive that through Governor Cuomo's leadership on climate and the State's sustained clean energy investments and initiatives, New York is leading the nation's efforts to act on climate while protecting our communities and our irreplaceable natural resources."
Doreen M. Harris, Acting President and CEO, NYSERDA said, "As New York continues to build upon its success with growing a green economy and fighting climate change, today's announcement moves the needle even further by addressing one of largest contributors of harmful greenhouse gases - the transportation sector. NYSERDA is proud to support Governor Cuomo's nation-leading vision for economy wide carbon neutrality which provides the investments needed to equitably transition an entire industry while prioritizing benefits to disadvantaged communities through new, scalable programs that reduce harmful greenhouse gasses, identify new innovative transportation solutions and increase access to clean transportation for communities that have been most impacted by dirtier, fossil-fuel driven transportation infrastructure."
New York Power Authority President and CEO Gil C. Quiniones said, "NYPA is pleased to support Governor Cuomo's bold and innovative efforts to decarbonize the transportation sector. The Make Ready program will help leverage the full potential of comprehensive state and utility EV programs. I am excited to see the electrification of the transportation sector and all its benefits realized in the near future. Today, NYPA's EVolve NY team is making electric vehicle driving the easier choice by installing fast charging equipment along New York's highways and byways, in urban centers and suburban downtowns, and at high-traffic bus depots upstate and downstate. At every corner, NYPA is building EV charging infrastructure for public transportation fleets, and for EV drivers to help decrease range anxiety and ensure New Yorkers and visitors can travel our great state from one end to the other while driving electric."
New York State Secretary of State Rossana Rosado said, "The Department of State is helping drive forward Governor Cuomo's innovative and nation-leading policies on climate change. As Chair of the REDC Strategic Implementation Assessment Team, and member of the Governor's Climate Action Council, I am proud our agency is leveraging its leadership over the Downtown Revitalization Program to bring fast EV charging to our downtowns. This initiative will help build a comprehensive charging network and break access barriers for people who care about climate change but are unable to charge at home, which are critical components to meeting our state's nation-leading climate goals and supporting sustainable downtown development."
New York State Department of Transportation Commissioner Marie Therese Dominguez said, "The Department of Transportation is pleased to partner with the Public Service Commission and the Department of Environmental Conservation to advance New York's commitment to accelerate investments in the electrification of the transportation system. The strategic investments approved today will support Governor Cuomo's nation-leading carbon neutrality goals by ensuring the availability of electric vehicle charging stations and support infrastructure as well as proving funds to accelerate the deployment of all-electric fleets. The Governor's sustained focus on environmentally-responsible investments not only enhances air quality and improves public health, but continues to create new sustainable well-paying green jobs."
Long Island Power Authority CEO, Tom Falcone said, "Governor Cuomo's efforts to expand electric vehicles is a boost for the climate and the economy. With nearly one third of all electric vehicles in New York here on Long Island, we will be building over 4,500 new EV charging stations to support 180,000 EVs locally by 2025. Governor Cuomo's announcement will reduce carbon emissions, air pollution, and build a strong green economy in New York."
New York State's Nation-Leading Climate Plan
Governor Cuomo's nation-leading climate plan is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and will continue fostering a green economy as New York State Builds Back Better as it recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to reach its mandated goals of economy wide carbon neutrality and achieving a zero-carbon emissions electricity sector by 2040, faster than any other state. It builds on New York's unprecedented ramp-up of clean energy including a $3.9 billion investment in 67 large-scale renewable projects across the state, the creation of more than 150,000 jobs in New York's clean energy sector, a commitment to develop over 1,800 megawatts of offshore wind by 2024, and 1,700 percent growth in the distributed solar sector since 2012. New York's Climate Action Council is working on a scoping plan to build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050 while ensuring that at least 40 percent of the benefits of clean energy investments benefit disadvantaged communities.