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Electrification of Transportation Strategic Roadmap

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Electrification of Transportation Strategic Roadmap March 29, 2018 The Honorable Chair and Members of the Hawai 'i Public Utilities Commission ZOIB MAR 2CJ P 2: Li t; Kekuanaoa Building, 1st Floor PLJr' 1 iT'L 1··1·T--:c- 465 South King Street PU• ;.) ··' \,) j I ' .LJ ( ,. ('; ~ ....·' ~ l r:' :""· '·"' r- I I1 r'~~ I Honolulu, Hawai 'i 96813 . .. , I . , -..~· ..__) I ...... 1 Dear Commissioners: Subject: Docket No. 2016-0168 EV-F and EV-U Pilot Extension Electrification of Transportation Strategic Roadmap In accordance with Decision and Order Nci. 34592, 1 filed June 2, 2017 in the subject proceeding, the Hawaiian Electric Companies'2 respectfully submit their Electrification of Transportation ("EoT") Strategic Roadmap ("Roadmap"). The Roadmap represents a straightforward guide, based on input from stakeholders, transportation and technical experts, policymakers, non-government organizations and perhaps most importantly, customers, for turning the Companies' transportation transformation plans into actions. The Roadmap describes a number of steps to accelerate the EoT, including: (1) increasing electric vehicle ("EV") adoption by helping to lower costs and educating customers; (2) accelerating the buildout of EV charging infrastructure; (3) supporting the electrification of buses and other heavy equipment; (4) incentivizing EV charging to align with grid needs and save drivers and utility customers money; and (5) coordinating with ongoing grid modernization and planning efforts to help maximize the use of renewable resources. With these and other actions described in the Roadmap, the State can enhance its energy security and accelerate its transition from fossil fuels to renewable resources, both for the production of electricity and for ground transportation, while at the same time helping to facilitate more renewable resources online and helping to lower energy costs for customers. If you have any questions on this matter, please call Brennon Morioka, General Manager, Electrification of Transportation at 543-7570. Sincerely, Drull~ Manager, Regulatory Non-Rate Proceedings Attachment c: Division of Consumer Advocacy Department of Business, Economic Development, and Tourism 1 See Ordering Paragraph l .Eat 68 ("The Companies shall file their 'Electrification of Transportation' strategy by or before March 31, 2018."). 2 The "Hawaiian Electric Companies" or "Companies" are Hawaiian Electric Company, Inc., Hawai 'i Electric Light Company, Inc. and Maui Electric Company, Limited. Hawaiian Electric PO BOX 2750; HONOLULU, HI 96840-0001 Electrification of Transportation STRATEGIC ROADMAP MARCH 2018 Table of Contents List of Figures ..................................................................................................................4 Executive Summary .........................................................................................................6 1. Our approach to developing Hawaiian Electric’s EoT Strategic Roadmap ...........................................................................................9 2. Background and policy context: Electriÿed transportation in Hawai‘i ........................................................................................16 3. EoT will provide value to Hawaiian Electric customers .......................................32 4. Market, technology and barriers assessment for electriÿed transportation ........................................................................................40 5. Deÿning Hawaiian Electric’s role in EoT ...............................................................64 6. Hawaiian Electric’s proposed role in enabling electriÿcation of light-duty vehicles ......................................................................68 7. Hawaiian Electric’s proposed role in enabling electriÿcation of buses ...........................................................................................91 8. Hawaiian Electric’s proposed role in enabling electriÿcation of other vehicle types .....................................................................94 9. EoT Strategic Roadmap alignment with Hawaiian Electric programs and ÿlings ................................................................97 10. Hawaiian Electric’s EoT Strategic Roadmap responds to Commission requirements in D&O No. 34592 ...............................103 Appendix A: Stakeholder letters of support ............................................................105 Appendix B: Agenda for Hawaiian Electric’s EoT workshop, November 9, 2017 ......................................................139 Appendix C: Invitees to Hawaiian Electric’s EoT workshop, November 9, 2017 ..............................................................140 Appendix D: Follow-up online survey sent to invitees to Hawaiian Electric’s EoT Workshop ...................................141 Appendix E: Electric vehicle forecast methodology and assumptions .................142 Appendix F: Cost-beneÿt analysis methodology and assumptions ......................144 Appendix G: Acronyms and Abbreviations ...............................................................152 List of Figures Figure 1. Guiding Principles for EoT Strategic Roadmap Development ................ 9 Figure 2. Photos from Hawaiian Electric’s November 9, 2017 EoT workshop ..... 10 Figure 3. Organizations that provided input to the EoT Strategic Roadmap ....... 11 Figure 4. Funnel applied to select proposed near-term Hawaiian Electric EoT actions ................................................................. 14 Figure 5. Bloomberg New Energy global forecast of electric light-duty vehicles versus internal-combustion engine (ICE) vehicles (millions of vehicles on the road)......................... 16 Figure 6. ICCT’s Count of EV Promotion Actions for the Top 24 U.S. Metropolitan Areas ................................................... 17 Figure 7. Public EV Charging Stations on O‘ahu, Maui, Moloka‘i, La- na‘i and Hawai‘i .............................................. 18 Figure 8. Honolulu Mayor Kirk Caldwell joined by other Mayors and representatives, including Master Navigator Nainoa Thompson, at Pokai Bay to announce the counties’ commitment to using renewable energy to power their government vehicles by 2035 .......................................... 20 Figure 9. Honolulu Mayor Kirk Caldwell, joined by Hawaiian Electric CEO Alan Oshima, OTS General Manager Roger Morton, Deputy Director of Transportation Services Jon Nouchi, and other stakeholders at a January 2018 press conference announcing the arrival of the ÿrst battery electric bus provided by Proterra ............................................... 20 Figure 10. OTS bus drivers at Middle Street Transit Center standing in front of Honolulu’s ÿrst transit electric bus being tested on O‘ahu roads ................................... 21 Figure 11. Screenshots of EV WattPlan tool ............................................................. 22 Figure 12. Hawaiian Electric employees sharing EV facts with the community at the “Grow Hawaiian Festival,” a celebration of Hawai‘i’s culture, native plants, and sustainability hosted at the Bishop Museum in 2017 ..................................................................... 23 Figure 13. Sales impacts of Hawaiian Electric’s partnership with Nissan NA .......................................................................................... 23 Figure 14. EVs for a Better Hawai‘i event, at which HEI donated electric vehicles to various non-proÿts ............................. 24 Figure 15. Hybrid Drive Bucket Truck in Hawaiian Electric’s °eet .......................... 24 Figure 16. JUMPSmart Maui equipment providing charge to EVs ......................... 26 Figure 17. Alternative Fuel Corridors on Maui.......................................................... 28 Figure 18. Bloomberg New Energy Finance’s ‘Electric Car-Boom’ ........................ 33 4 HAWAIIAN ELECTRIC COMPANIES’ ELECTRIFICATION OF TRANSPORTATION STRATEGIC ROADMAP Figure 19. Hawaiian Electric’s personal light-duty EV adoption forecast, O‘ahu, 2010 – 2045 .................................................... 34 Figure 20. Direct economic costs and beneÿts to O‘ahu per personal light-duty electric vehicle, NPV 2018 - 2045 ............................ 35 Figure 21. Costs and beneÿts to Hawaiian Electric customers per personal light-duty electric vehicle adopted on O‘ahu, NPV 2018 - 2045 ........................................... 36 Figure 22. Fossil fuel consumption by O‘ahu light-duty vehicles, assuming Hawaiian Electric’s EV adoption forecast ................................................................................ 37 Figure 23. Carbon dioxide emissions by O‘ahu’s light-duty vehicles, assuming Hawaiian Electric’s EV adoption forecast ................................................................................ 38 Figure 24. CARB’s ‘Commercialization Arc,’ Showing Stages and Sources of Public Investment .............................. 40 Figure 25. CARB’s Assessment of technology status for electriÿed medium-duty and heavy-duty battery-electric technologies ................................................................... 41 Figure 26. 2014 Petroleum Fuel Consumption in Hawai‘i by Sector and Transportation Mode ........................................................ 44 Figure 27. Hawaiian Electric DC Fast Charging station installed at Dole Plantation ...................................................................... 46 Figure 28. Number of Level 2 public EV Charging Stations Installed in Hawai‘i through February
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