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High-Potential Regions for Electric Truck Deployments

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High-Potential Regions for Electric Truck Deployments Electric Truck Guidance Report Series HIGH-POTENTIAL REGIONS FOR ELECTRIC TRUCK DEPLOYMENTS BY JESSIE LUND AND MIKE ROETH M OUN KY T C A I O N R I N E STIT U T “This analysis really shows the geographic distinctions across the country. Not only does it expose some gaps, but in doing so, it gives us our marching orders—How can we help ensure that electric trucks are set up for success regardless of where they are deployed? In some places, that might mean more transportation electrification planning from utilities; in others that might mean incentives; and in still others it might mean accelerating pilots to gain experience and confidence.” —Britta Gross, Managing Director, Rocky Mountain Institute “We are confident that there will be a significant, early wave of electric tractors in regional haul. For success, they need to be deployed in the regions where they will be most successful. This comprehensive framework is a strong start.” —Mike Roeth, Executive Director, North American Council for Freight Efficiency AUTHORS & ACKNOWLEDGMENTS AUTHORS ACKNOWLEDGMENTS Jessie Lund, Rocky Mountain Institute This report was made possible by: Mike Roeth, North American Council for Freight Efficiency Atlas EV Hub, a product of Atlas Public Policy, which provided data on US state-level policies to * Authors listed alphabetically. All authors from support this analysis Rocky Mountain Institute unless otherwise noted. The Pembina Institute, a non-profit think tank that works to advance a prosperous clean energy future for CONTACTS Canada through credible policy solutions that support Jessie Lund, [email protected] communities, the economy, and a safe climate. We Mike Roeth, [email protected] would like to thank the Pembina Institute for sharing its forthcoming study of the ZEV policy landscape in Canada. SUGGESTED CITATION Jessie Lund and Mike Roeth, High-Potential Regions MathWorks Math Modeling (M3) Challenge, a for Electric Truck Deployments, Rocky Mountain program of Society for Industrial and Applied Institute, 2020, https://rmi.org/insight/high-potential- Mathematics (SIAM), which in 2020 leveraged the regions-for-electric-truck-deployments. collective genius of nearly 3,500 high school students from across the country to tackle the challenge of Update: November 2020—A previous version of prioritizing key routes and on whose findings we drew this report included only the US analysis. The report for this analysis has since been updated to include an analysis of Canadian regions as well. The generous support of NACFE’s 2020 Sponsors, the Hewlett Foundation, and ClimateWorks Foundation All images from iStock unless otherwise noted. The ongoing assistance from fleets, manufacturers, utilities, governments, non-governmental organizations, academia, and others for our work guiding the future of electric trucks. © 2020 North American Council for Freight Efficiency and Rock Mountain Institute. All rights reserved. The contents of this document are provided for informational purposes only and do not constitute an endorsement of any product, service, industry practice, service provider, manufacturer, or manufacturing process. Nothing contained herein is intended to constitute legal, tax, or accounting advice, and NACFE assumes no liability for use of the report contents. No portion of this report or accompanying materials may be copied, reproduced, or distributed in any manner without express attribution to the North American Council for Freight Efficiency. ABOUT US M OUN KY T C A I O N R I N E STIT U T ABOUT ROCKY MOUNTAIN INSTITUTE Rocky Mountain Institute (RMI)—an independent nonprofit founded in 1982—transforms global energy use to create a clean, prosperous, and secure low-carbon future. It engages businesses, communities, institutions, and entrepreneurs to accelerate the adoption of market-based solutions that cost-effectively shift from fossil fuels to efficiency and renewables. RMI has offices in Basalt and Boulder, Colorado; New York City; Oakland, California; Washington, D.C.; and Beijing. www.rmi.org ABOUT NACFE The North American Council for Freight Efficiency (NACFE) works to drive the development and adoption of efficiency enhancing, environmentally beneficial, and cost-effective technologies, services, and operational practices in the movement of goods across North America. NACFE provides independent, unbiased research, including Confidence Reports on available technologies and Guidance Reports on emerging ones, which highlight the benefits and consequences of each, and deliver decision-making tools for fleets, manufacturers, and others. NACFE partners with Rocky Mountain Institute (RMI) on a variety of projects including the Run on Less fuel efficiency demonstration series, electric trucks, emissions reductions, and low-carbon supply chains. www.nacfe.org TABLE OF CONTENTS EXECUTIVE SUMMARY ................................................................................................................................... 06 1: INTRODUCTION ...............................................................................................................................................10 A Note on Regions vs. Corridors ..................................................................................................................................12 2: FRAMEWORK ..................................................................................................................................................13 Technology ..................................................................................................................................................................14 Need ............................................................................................................................................................................18 Support ........................................................................................................................................................................21 Other Considerations ..................................................................................................................................................26 3: ANALYSIS ..........................................................................................................................................................27 4: FINDINGS ...........................................................................................................................................................31 5: CONCLUSIONS AND RECOMMENDATIONS ......................................................................................32 Conclusions ................................................................................................................................................................32 Recommendations ......................................................................................................................................................33 Additional Resources ..................................................................................................................................................34 GUIDANCE REPORT EXECUTIVE SUMMARY EXECUTIVE SUMMARY REGIONS FOR ELECTRIC TRUCK DEPLOYMENTS DEPLOYMENTS TRUCK ELECTRIC FOR REGIONS SUMMARY EXECUTIVE Regional haul heavy-duty trucking operations thereby benefitting the industry as a whole and are good candidates for electrification due to the speeding adoption of this technology. segment’s relatively short-haul nature and return- to-base operations. Many early electric truck This report proposes a three-part framework that deployments have taken place in California, due to the industry can use to prioritize regions for electric the state’s supportive policies and incentives as well truck deployments: as its milder climate and terrain, which make it ideal for operating battery electric trucks. As the market • Technology – Identify the regions that are matures, fleets, utilities, manufacturers, policymakers, most favorable to the unique attributes of the charging companies, and other industry stakeholders technology itself. are seeking assistance to prioritize regions outside California for future deployments of this technology. • Need – Identify the regions that exhibit the greatest need for the technology. If deployments are done strategically, they are more likely to be successful, which not only benefits first- • Support – Identify the regions that provide the movers, but also catalyzes further deployments, most support for the technology. 6 | NACFE AND ROCKY MOUNTAIN INSTITUTE GUIDANCE REPORT “In considering where to deploy electric trucks, there’s a lot to think about—everything from charging infrastructure to which climates the technology operates the best in to where the most funding and incentives are available. This framework helps not just fleets, but utilities, OEMs, policymakers, and others think through the many considerations to ensure that wherever they DEPLOYMENTS TRUCK ELECTRIC FOR REGIONS SUMMARY EXECUTIVE deploy electric trucks, they’re a success.” –Patrick Browne, Director of Global Sustainability, UPS EXHIBIT ES-1 Framework for Identifying and Prioritizing High-Potential Regions for Electric Truck Deployments TECHNOLOGY NEED Highest Potential Range (climate, grade, etc.) for Electric Air quality & environmental justice Electricity pricing Truck Greenhouse gas emissions Regenerative braking Deployment Freight flows SUPPORT State, province, & city policies & incentives Utility programs & rates Training programs HIGH-POTENTIAL
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