g1CA Toolkit for Advanced Transportation Policies Improving Environmental, Economic, and Social Outcomes for States and Local Governments Through Transportation October 2018 Acknowledgments Lead Authors: Carrie Jenks, Grace Van Horn, Lauren Slawsky, Sophia Hill, M.J. Bradley & Associates, LLC In addition, the authors thank the following for their helpful contributions to and input on the report: Albert Benedict, Shared-Use Mobility Center; James Bradbury, Georgetown Climate Center; Tom Cackette, Tom Cackette Consulting; JoAnn Covington, Proterra; David Hayes, State Energy & Environmental Impact Center; Miles Keogh, National Association of Clean Air Agencies (NACAA); Kathy Kinsey, Northeast States for Coordinated Air Use Management (NESCAUM); Will Toor, Southwest Energy Efficiency Project; and Alyssa Y. Tsuchiya, Union of Concerned Scientists. This report reflects the analysis and judgment of the authors only and does not necessarily reflect the views of any of the reviewers. The authors would also like to thank Gary S. Guzy and Thomas Brugato, Covington and Burling LLC, for the legal analysis contained within this report as well as the Environmental Defense Fund for the support to develop this report. This report is available at www.mjbradley.com. About M.J. Bradley & Associates M.J. Bradley & Associates, LLC (MJB&A), founded in 1994, is a strategic consulting firm focused on energy and environmental issues. The firm includes a multi-disciplinary team of experts with backgrounds in economics, law, engineering, and policy. The company works with private companies, public agencies, and non-profit organizations to understand and evaluate environmental regulations and policy, facilitate multi-stakeholder initiatives, shape business strategies, and deploy clean energy technologies. © M.J. Bradley & Associates 2018 About Covington & Burling LLP Covington & Burling LLP is an international law firm that advises multinational corporations, nonprofits, and governments on significant transactional, litigation, regulatory, and public policy matters. The firm's distinctively collaborative culture allows it to be truly one team globally, drawing on the diverse experience of lawyers and advisors across the firm by seamlessly sharing insight and expertise. Covington has offices in Beijing, Brussels, Dubai, Frankfurt, Johannesburg, London, Los Angeles, New York, San Francisco, Seoul, Shanghai, Silicon Valley, and Washington, D.C. The firm's clients benefit from the experience of more than 120 former government officials, diplomats, and regulators. For questions or comments, please contact: Carrie Jenks Gary S. Guzy Senior Vice President Senior of Counsel M.J. Bradley & Associates, LLC Covington & Burling LLP +1 978 369 5533 +1 202 662 5978 [email protected] [email protected] Page | i Foreword by Sylvester Turner, Mayor of the City of Houston Transportation is a vital component of our modern existence. It touches almost every aspect of our lives. Our transportation networks shape our communities, define how we get to work and school, and make it possible to visit family and friends. Transportation influences the well-being of our citizens and the health of our economy, so it’s no surprise that local governments are always focused on our transportation networks—and on ways to improve them. The good news is that, thanks to new technologies, we have good options for improving our transportation networks to achieve a multitude of societal benefits. In fact, there is enormous opportunity for progress and innovation in the transportation sector. Emerging technologies offer the potential for lower pollution and better transit. Smarter vehicles and transportation systems can help Americans get where they need to go more rapidly and safely than ever before. And we can accomplish all that while also ensuring that we’re protecting our climate and providing cleaner, healthier air that we all can breathe. A modern, advanced transportation system can help us achieve multiple public health and public policy goals at once, like reducing pollution and decreasing congestion. A range of smart policies now exist that can speed the transition to the transportation systems of the future, and local governments will be a key player as we move toward the adoption and implementation of those policies. It’s local and state governments that will lead the way as we adopt emerging transportation technologies. Cities and states have an enormous opportunity right now to support cleaner and smarter transportation networks. This toolkit is designed to help seize those opportunities and put the best technologies to work. It has a menu of options that are available today that will cut pollution and improve air quality while supporting advanced, accessible transportation networks. Its pages detail a host of win-win policies that local and state government have the authority to adopt and put to work, right now. Our cities are ready to move forward and implement solutions that will make our communities stronger. Hopefully, this toolkit will make it easier to take action. Page | ii Table of Contents Acknowledgements ................................................................................................................................................... i Foreword by Sylvester Turner, Mayor of the City of Houston ................................................................................ ii Introduction .............................................................................................................................................................. 1 Goals of Advanced Transportation Policies ........................................................................................................... 10 Local Emissions Reductions and Health Impacts ............................................................................................... 10 Greenhouse Gas Reduction ................................................................................................................................ 10 Economic Development, Advanced City Design, and Congestion Reduction ................................................... 12 Advanced Vehicle Technology Transformation ................................................................................................. 13 Grid Stability and Renewable Integration .......................................................................................................... 14 Brief History of State and Local Transportation Policy Legal Authority .............................................................. 15 Clean Air Act and the Vehicle Emissions Waiver .............................................................................................. 15 California Vehicle Standards: Incorporating GHG Emissions Standards .......................................................... 16 Current Section 177 States ................................................................................................................................. 17 Transportation Toolkit: Policy Options for States and Local Governments .......................................................... 18 Emissions-Focused Measures ............................................................................................................................. 18 State, Local, and Private Fleet-Based Measures........................................................................................ 18 Light- and Heavy-Duty Vehicle Emissions Standards .............................................................................. 21 Current Status of Federal and State Emissions Standards .................................................................... 21 Opportunities for Section 177 State Expansion ................................................................................... 23 Additional State Standard Opportunities: ZEV Targets and the ZEV MOU ....................................... 23 Market-Based Mechanisms ....................................................................................................................... 24 Transportation Cap-and-Invest ............................................................................................................. 24 Low Carbon Fuel Standards ................................................................................................................. 26 Gas Tax or Fee ..................................................................................................................................... 26 “Feebate” Programs ............................................................................................................................. 27 Electric Vehicle Measures .................................................................................................................................. 30 Electric Vehicle Financial Incentives ........................................................................................................ 30 Electric Vehicle Infrastructure Support ..................................................................................................... 35 Permitting and Siting ............................................................................................................................ 35 Page | iii Charging at Government Sites ............................................................................................................. 38 Financial Credits for Charging Infrastructure .....................................................................................