Why Advanced Transportation
Advanced transportation – including electric vehicles, hydrogen fuel cell vehicles, natural gas vehicles, and supporting infrastructure and technology – is currently a $21.8 billion market in the United States in 2016. Of that total, the U.S. hybrid and plug-in electric vehicle market accounted for $16.7 billion in revenue.
Despite strong market growth to date, advanced vehicles are still a small fraction of the total vehicle market, and they face significant headwinds. The two key components of advanced vehicle deployment – vehicle adoption and infrastructure build-out – are locked in a chicken-or-the-egg, “which comes first” dilemma, and supportive policies for both vehicles and infrastructure have, inaccurately, come under fire as mechanisms to support wealthy drivers while undermining the upkeep of our roadways.
How Is AEE Engaged
AEE has established an Advanced Transportation Working Group within our membership, which is guiding our work going forward. With input from our members, AEE has developed a strategy and a set of policy priorities:
- Vehicle Incentives – Reducing vehicle cost is the key to accelerating advanced vehicle adoption, and increased adoption will in turn lead to continued improvements in cost and performance.
- Infrastructure Incentives – Lack of consumer confidence in fueling infrastructure deters vehicle ownership; incentives cut infrastructure costs, reducing a key barrier to build-out.
- Utility Regulation – Better utility regulatory models and rate designs (e.g., the way in which demand charges are applied) must be addressed for the electric vehicle market to reach its full potential.
At the state level, we are initially focused on California, Texas, and Michigan, and we are evaluating opportunities in other states on an ongoing basis with the Working Group.
We plan to expand our work over time to cover additional drive-train technologies, more states and more federal work. Particularly as it relates to states, our goal will be to focus on key “bellwether” states to drive significant market transformation while developing replicable models for use across the country.
How To Get Involved
All AEE members can join the AEE Advanced Transportation Working Group through which they can guide our efforts. Members join a monthly call and can participate in a range of activities at their discretion, including reviewing issue papers and regulatory comments, meeting with policymakers, joining sign-on letters, and other points of engagement. Contact our membership team firstname.lastname@example.org to learn more.