To help remedy the environmental impact from Volkswagen’s (VW) diesel emissions cheating scandal, part of the settlement approved in October requires VW to spend $2 billion on installing zero emission vehicle (ZEV) charging infrastructure across the U.S. and educating the public about the benefits of driving electric. Not a bad idea.
But we need to ensure these funds are invested wisely. That’s why the Sierra Club teamed up with our friends at the Natural Resources Defense Council, the Ecology Center, Electric Auto Association, Environmental Law and Policy Center, Fresh Energy, Vermont Energy Investment Corporation, Ceres, the Greenlining Institute, Union of Concerned Scientists, and Conservation Law Foundation to recommend some forward-thinking and equitable guiding principles in a letter we sent to Volkswagen as it develops its plans. To ensure these dollars are spent on meaningful, nationwide emissions reductions projects, here are the recommendations we sent to Volkswagen:
VW should prioritize areas with high levels of air pollution and communities most impacted by it. Because disadvantaged communities, which can include low-income communities and communities of color, are disproportionately exposed to air pollution, these areas suffer from higher levels of air pollution, including smog, which is a major type of air pollution caused by VW’s cheating vehicles. For example, seven in ten black Americans live in areas with unsafe air, and black children are four times more likely than other children to be admitted to the hospital for asthma, which smog is known to trigger. There should be a minimum amount of money VW commits to invest in such communities to ensure that the communities most impacted also have a chance to benefit.
EV charging stations should be cited strategically. Investment in EV infrastructure should be installed in areas that experts have identified as key to accelerating and supporting EV adoption, such as multi-unit dwellings (apartments and condominiums), workplaces, and highway corridors. Some public vehicle charging stations outside these areas have been historically underutilized, and VW should consider this as they formulate their installation plans.
VW should use EV charging to create a more efficient and cleaner electricity grid. EVs, like all cars, are only driven during a small fraction of the day, so they tend to have a flexible and manageable impact on the electrical grid. But as more people begin to drive electric, EVs could place a strain on the electric grid and unnecessarily increase pollution from power plants if their electricity demand is not properly managed. However, since EVs are most often charged when electricity use is low, such as overnight, they can be charged when strain on the grid is minimal and also increase the use of otherwise underused or otherwise idled grid equipment. This is referred to as “filling valleys” in load, which maximizes the efficient utilization of grid assets and can save all ratepayers money. In addition, because you can control the timing of when EVs are charged, you can charge them when renewable energy is abundant, such as when the sun is shining, or when the wind is blowing, which can facilitate increased renewable energy use. VW investments should support charging technology with load management capabilities and incorporate electricity load management tools such as demand response, solar and battery storage, and rate design, as is appropriate on a case by case basis. For more information, read Fully Charged: How Utilities Can Help Realize Benefits of Electric Vehicles in the Northeast and Driving Out Pollution: How Utilities Can Accelerate the Market for Electric Vehicles.
The process should be transparent. VW should make all recommendations by third parties available for review online, and the company should be transparent in its decision-making process and allow for a meaningful public input process.
Investment should supplement existing and planned infrastructure. It’s important to ensure that VW’s projects address gaps in the current market and funding sources, and not displace existing or planned investments by other third party charging entities, utilities, or governments. Any plans that VW has should supplement, not replace, existing infrastructure. Investments should also avoid creating any monopolies by fostering a robust and competitive market for charging infrastructure and services.
Charging infrastructure should translate into fuel cost savings for drivers. One of the great benefits of owning and operating EVs is the far lower lifetime fuel (electricity) and maintenance costs. For VW’s investment in charging infrastructure to accelerate EV adoption, VW should strive to ensure that EV drivers aren’t gouged at the plug and instead benefit from fuel cost savings at stations deployed by the company.
Education and outreach should be done in partnership with dedicated organizations and entities. Since most Americans are still unaware of the many benefits of switching to EVs, like the $7,500 federal tax credit and rebates available in many states, education and outreach is needed. To be successful, efforts should be done in collaboration with organizations already working on the ground in community education and EV promotion.
Volkswagen will submit a Draft ZEV Investment Plan to both the California Air Resources Board and the U.S. Environmental Protection Agency on February 22, 2017 with proposed projects and estimated costs. The Sierra Club and our partners look forward to these plans and hope to work alongside Volkswagen to expand clean transportation opportunities.
If you’re looking for more information about the VW settlement, check out our blog, 7 Things to Know About Billions in VW Clean Transportation Funds and our VW Info site where you can find fact sheets, the settlement timeline, advocacy tools, and more.