Navigating California’s New EV Mandate

September 21^st, 2022

California’s going all in on electric. On August 25^th, Governor Gavin Newsom made a very important announcement concerning the future of transportation in the Golden State: “We can solve this climate crisis if we focus on the big, bold steps necessary to cut pollution. California now has a groundbreaking, world-leading plan to achieve 100 percent zero-emission vehicle sales by 2035.” Big and bold, indeed. And while highly encouraging, it brings up a number of questions moving forward.

What Does the Regulation Say Exactly?

According to the California Air Resources Board, which approved the officially named “Advanced Clean Cars II” rule, implementation will be in stages. Target one is to achieve 35% ZEV sales by 2026. Target two is 68% ZEV sales by 2030. And target three is 100% by 2035. This encompasses all new cars, SUV’s and light duty trucks, with requirements on larger, diesel-burning trucks coming 10 years later. Included in CARB’s definition of “ZEV” are plug-in hybrids with battery ranges of 50 miles or more. Used cars and cars bought out of state are exempt.

How Does This Benefit California?

CARB claims the regulation will reduce smog-inducing pollution 25% or more by 2037, allowing it to meet federal air quality standards. This is thanks to 9.5 million fewer ICE vehicles on the road by 2035. Per their website, “From 2026 through 2040, the regulation will result in cumulative avoided health impacts worth nearly $13 billion, including 1,290 fewer cardiopulmonary deaths, 460 fewer hospital admissions for cardiovascular or respiratory illness, and 650 fewer emergency room visits for asthma.” Benefits will also extend beyond the state, as California has become a trailblazer in the realm of electric mobility, with several other states including Washington, Oregon, Massachusetts and Virginia agreeing to base their own state’s laws on CARB rules.

What Does This Mean for Automakers?

Expert Neal Boudette’s recent New York Times piece, “California E.V. Mandate Finds a Receptive Auto Industry,” states that California was initially prodding carmakers to go along with the electric revolution, but now the tables have turned. “Even before state regulators acted Thursday to ban sales of new internal-combustion vehicles by 2035,” writes Boudette, “Detroit’s Big 3 and their international rivals were setting increasingly aggressive targets for exclusively electric product lines.” The fact that carmakers are already moving full steam ahead, including investing in supply chains and the acquisition of battery materials, means they should be well positioned for achieving California’s targets. “To move everything to EVs in California doesn’t seem [so] outlandish and unattainable right now,” says Jessica Caldwell, Executive Director of Insights at Edmunds.

What Does This Mean for Drivers?

The aggressive push toward a zero-emission future by both state and federal governments as well as auto manufacturers means drivers in every location, vocation and income level can find a ZEV that’s right for them. Options will increase across the board, and increased competition will drive down prices, eventually phasing out the need for subsidies. Dependence on fossil fuels will decrease, pricey gas bills will be a thing of the past and drivers will rest easy knowing they’ve done their part to help leave a cleaner planet for future generations.

What Does This Mean for EVCS?

Infrastructure is more important than ever, especially as the state works on shoring up its sometimes-spotty power grid while continuing the transition to renewables. However, for its part, EVCS has already shown it’s ready for the task, installing over 550 chargers in California alone. Moreover, our chargers are some of the fastest, most durable on the market, boasting high efficiency levels, dual ports, 15-inch color displays, RFID contactless payment, advanced app-to-unit network technology and the most reliable customer service team in the industry. Recent private and state-level investments have allowed us to ramp up installation efforts as we lead the way in increasing the number of chargers from the current 80,000 to the nearly 1.2 million needed by 2030. In short, we’re bringing new meaning to the term “take charge.” Stay posted here for further updates on our progress.

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Installation of the Month (June 2021): Hyatt Place Riverside/Downtown

The ability to travel is something many of us take for granted. Our Interstate Highway System allows us to freely traverse state boundaries – to go wherever we choose whenever we choose – from the snow-capped Colorado Rockies to the soupy Everglade swamplands to the historic lighthouses of coastal New England. However, EV drivers are more acutely aware of their travel limitations because many areas of the country have yet to adopt pro-electric infrastructure policies, often leaving them with few ground-travel options other than ICE vehicles. We knew getting more Americans to embrace the electric revolution would require buy-in from the hospitality industry. As such, much of our focus has gone toward hotels that, by serving as site hosts for charging stations, can help kickstart that ubiquitous access required to convert many EV holdouts.

Wall Street Journal Piece Brings Up Questions… And We Answer

Stephen Wilmot’s recent article in the Wall Street Journal, “Investors Look for an EV Charge,” debates the merits of investing in EV infrastructure, admitting that while chargers likely make for better investments than cars, the sector still holds many potential pitfalls that should be considered before jumping in. While that may be true, many of the examples backing up this assertion cite the business models of the largest EV installers in the country while failing to consider what less visible but faster-growing companies like EVCS are doing to mitigate such risks. Below are a few quotes from the article and our thoughts on them, including how we’re different.

Commentary on EV Industry Profitability Claims

In a recent Driving.ca article titled “EV-Charging Industry is Doing Everything Except Making Money,” author David R. Baker makes a compelling argument that the EV infrastructure sector is a revenue desert, essentially incapable of generating enough cash flow to sustain profitability due to a lack of interest from motorists. “The dilemma boils down to demand,” he states, before adding that “lots of people still driving gasoline-powered cars won’t consider going electric until they see charging stations widely deployed.”

Installation of the Month (May 2021): LADOT Lot 656

The Los Angeles Department of Transportation (LADOT) notes on its website that ICE vehicles are one of the city’s top contributors to air pollution, accounting for 19% of all greenhouse gas emissions, before proclaiming, “We can do better… We’re investing in public transit, testing new technology, and adopting mobility innovations for a cleaner environment and brighter future.” At first, it might just sound like flowery rhetoric, but we can personally attest to that commitment. Starting in 2019, LADOT partnered with us to install DCFCs at 57 city-owned lots, with almost 30% of those installations now completed. This alliance has been integral in promoting our goal of zero-emission mobility in the City of Angels by facilitating greater access to infrastructure.

Addressing Pain Points in Creating EV Infrastructure

A recent GovTech.com article titled “How Biden Plans to Build 500 EV Charging Stations” discusses the President’s goals for creating a nationwide network of 500,000 such installations by 2030. While it does a smart job laying out many of the pain points we face in facilitating EV adoption, the mention of solutions was far less prevalent, and ones that were mentioned seemed speculative or tenuous. However, over the last three years, EVCS has already taken the lead in addressing many of these challenge areas, allowing us to dominate the installation market across the West Coast.