In celebration of Earth Week, Governor Kathy Hochul has announced that the New York State Public Service Commission has initiated a proceeding to implement policies and develop programs related to medium- and heavy-duty electric vehicle charging infrastructure and planning. The proceeding will also begin the process for proactive investment in the utility infrastructure required to serve transportation electrification. In addition, the initiative will prioritize medium- and heavy-duty charging infrastructure investments in disadvantaged communities.
“It is critical that we invest in supportive infrastructure to get more electric vehicles on streets across New York and reduce harmful vehicle emissions,” Governor Hochul said. “With today’s PSC decision, we are spurring innovation and advancing our nation-leading climate goals by making it easier for New Yorkers and businesses to go electric.”
The Public Service Commission’s action follows Governor Hochul’s 2023 State of the State address directive to identify and remove the barriers to deploying charging infrastructure for medium- and heavy-duty vehicles.
Building on New York’s nation-leading investments in utility programs, totaling over $1 billion, that support transportation electrification, Governor Hochul directed the Department of Public Service (DPS) to launch a proceeding that will identify and remove the barriers to the efficient and timely deployment of the charging infrastructure needed to electrify New York’s medium- and heavy-duty vehicles. Pollution from these vehicles has disproportionately impacted disadvantaged communities where air quality is a public health issue, such as Hunts Point in the Bronx where more than 15,000 diesel trucks operate every day. As part of this proceeding, DPS will consider revisions to utility electric vehicle (EV) infrastructure planning to encourage proactive investments in high priority locations, especially in disadvantaged communities and Clean Air Act non-attainment areas.
Public Service Commission Chair Rory M. Christian said, “I applaud Governor Hochul’s commitment to create a cleaner environment. The PSC recognizes the importance of the electrification of the transportation sector in the attainment of New York State’s climate goals. To advance these goals, the PSC has implemented policies to incentivize the development of electric vehicle charging infrastructure and programs. Thus far, the focus of these policies has largely been on light-duty passenger EVs, such as sedans, pickup trucks, and SUVs. To ensure a holistic approach that supports the decarbonization goals codified in the Climate Leadership and Community Protection Act (Climate Act), the PSC is commencing this proceeding to address the electrification needs of the State’s medium- and heavy-duty EV sector.”
With the PSC’s decision, DPS, the staff arm of the PSC, will develop at least one whitepaper later this year to launch development of a medium- and heavy-duty program and proactive planning process, which will be subject to public notice and comment, before potential PSC action. DPS will convene several technical conferences over the next 6 months to obtain stakeholder input in advance of issuing a whitepaper.
While the exact scope of this proceeding will be developed with the aid of interested stakeholders, EV infrastructure investments will prioritize disadvantaged communities, including those in Clean Air Act non-attainment areas that bear a disproportionate burden of pollution from trucks and buses. Additionally, the proactive planning process will ensure the grid infrastructure is prepared to enable the growing EV charging needs across New York State.
The PSC’s decision today builds upon prior Commission actions on infrastructure development and innovative rate design to support New York’s transportation electrification efforts. This includes the $701 million EV Make-Ready program that provides incentives to fund the grid infrastructure and customer-side work necessary to make sites ready for EV charging, which includes a minimum of $206 million allocated toward equitable access and benefits for disadvantaged communities. The Department is currently undertaking a midpoint review of this program and issued a whitepaper on March 1, 2023 with a number of recommendations for potential revisions and expansion of this program.
While the make-ready program helps offset the upfront cost of the EV charging infrastructure, the Commission has also adopted beneficial rates and managed charging programs to help lower utility bills for residential and commercial electric vehicle charging. The managed charging programs provide incentives or bill credits for participants who can shift their charging to the most beneficial times for the grid. Residential customers may enroll in voluntary time-of-use rates and the EV Phase-In Rate provides an alternative to traditional demand-based rates for commercial EV customers. The EV Phase-In Rate is designed to reduce the impacts of demand charges on the operating costs for EV charging stations by starting with a time-of-use rate when utilization is low and blending in the demand charge as station usage increases. The utilities are required to file proposed tariffs for the EV Phase-In rate in July and are in the process of implementing a 50 percent demand charge discount that will go into effect on a faster timeline and remain in effect until the EV Phase-In rate becomes available. The EV Phase-In rate is expected to result in electricity costs that are at least 30 percent less expensive than the equivalent cost of gasoline, using today’s prices.
New York State’s Nation-Leading Climate Plan
New York State’s nation-leading climate agenda calls for an orderly and just transition that creates family-sustaining jobs, continues fostering a green economy across all sectors and ensures that at least 35 percent, with a goal of 40 percent, of the benefits of clean energy investments are directed to disadvantaged communities. Guided by some of the nation’s most aggressive climate and clean energy initiatives, New York is on a path to achieving a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and economy wide carbon neutrality by mid-century. A cornerstone of this transition is New York’s unprecedented clean energy investments, including more than $35 billion in 120 large-scale renewable and transmission projects across the state, $6.8 billion to reduce building emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.8 billion in NY Green Bank commitments. These and other investments are supporting more than 165,000 jobs in New York’s clean energy sector in 2021 and a 2,100 percent growth in the distributed solar sector since 2011. To reduce greenhouse gas emissions and improve air quality, New York also adopted zero-emission vehicle regulations, including requiring all new passenger cars and trucks sold in the State be zero emission by 2035. Partnerships are continuing to advance New York’s climate action with nearly 400 registered and 100 certified Climate Smart Communities, nearly 500 Clean Energy Communities, and the State’s largest community air monitoring initiative in 10 disadvantaged communities across the state to help target air pollution interventions and combat climate change.
