In case you construct it, they will take part: New York launches its electrical automobile market with a full make-ready order | Hodgson Russ LLP
On July 16, 2020, the New York Public Service Commission (“Commission”) approved more than $ 700 million for state utilities and the New York Energy Research and Development Agency (“NYSERDA”) to implement a wide range of incentives can and measures to revitalize the burgeoning electric vehicle (“EV”) market of the state. With several important changes discussed below, the Commission Regulation has largely adopted the make-ready program proposed by the Department of Public Service Employees (“Employees”), which we discussed at length in our previous warning here.
Highlights include the handling of public transport, a key concern of many comments on the staff’s proposal. The commission directed utilities to set up the Transit Authority Readiness Program to work with specific transit authorities to achieve 25 percent electrification by 2025. The commission also directed utilities to set up a medium and heavy Ready-Ready pilot program and a fleet assessment service.
To drive private investment and innovation, the Order directs NYSERDA to establish a clean vehicle transformation award for the environmental community, a clean personal mobility award, and an innovation award for clean medium and heavy vehicles to meet the need for electrification of transportation across the state shape .
The industry response to the Order has been largely positive. Matt Stanberry, General Manager for Advanced Energy Economy (“AEE”) said on the assignment, “Cement[s] New York’s place as a leader in the electrification of transportation, ”and Anne Reynolds of the New York Clean Energy Alliance (“ ACE-NY ”) stated,“ The scope of this program goes beyond any previous effort and recognizes the need Install vehicle chargers across the state. It’s a big leap for electric vehicles – and for New Yorkers thinking about buying an electric vehicle. “
I. New York EV Market and Delivery Goal
After making several adjustments to the rod model, the Commission determined that the following number of plugs in the following coverage areas are eligible for the make-ready incentive:
The table for the number of plugs in the following coverage areas that are eligible for the Make-Ready incentive can be viewed here.
(If the link above is not active, you can use https://www.hodgsonruss.com/assets/htmldocuments/July%2028%202020%20-%20Hodgson%20Russ%20Renewable%20Energy%20Client%20Alert_chart%201.pdf for visit the timetable.)
Both devices owned by utility companies (traditional distribution infrastructure such as step-down transformers, overhead lines, and utility meters) and devices owned by developers (ladders, trenches, and switchboards needed for the EV charging station) would be legitimate incentives for make-ready. The EV charging station itself, power supply blocks, modules, assembly parts and decentralized generation or energy storage material arranged next to one another would not be suitable for the incentive. Utilities approved contractors would build and install these devices and the customer would own them.
The program thus excludes utility company ownership of the charging station hardware and offers a discount, but not utility company ownership of the prepared infrastructure on the customer side of the meter.
To achieve these goals, the commission approved a budget of just over $ 700 million to cover the various initiatives. Approximately $ 590 million will be allocated to the Make-Ready program, $ 10 million to the Transit Authority’s Make-Ready program, and $ 100 million to pilots and environmental justice innovation awards.
II. NYPA Eligibility
Based on objections from several industry voices, the New York Public Authority (“NYPA”) is entitled to certain Make Ready incentives. However, eligibility was limited to two initiatives: (i) construction of ten fast charging stations in the regions of the Regional Economic Development Council in the hinterland by 2022; and (ii) investing in a network of direct current fast chargers (“DC”) throughout the state under NYPA’s existing Evolve NY program. Additionally, NYPA’s eligibility is contingent upon the eventual divestment of EV charging stations developed through program incentives over a 10-year period.
III. Eligibility criteria
Instead of the mandatory maximum incentive levels recommended in the DPS Staff White Paper, the Order provides more flexibility and allows incentives to:
- Up to 100 percent of the eligible public DC fast charger prep cost within one mile of environmental justice communities in the Con Edison, Central Hudson, O&R, and RG&E service areas, and within two miles of environmental justice communities in NYSEG and National Grid service areas;
- Up to 100 percent of eligible prep cost for Level 2 locations in apartment buildings within one mile of environmental justice or low- and middle-income communities in the service areas of Con Edison, Central Hudson, O&R, and RG&E, and within two miles of environmental justice or low- and middle-income communities in the NYSEG and National Grid service areas;
- Up to 90 percent of eligible prep costs for locations that meet all applicable admission requirements; and,
- Up to 50 percent of the eligible preparation costs for locations that do not meet all applicable admission requirements.
The table with the additional admission criteria can be displayed here. Note; The Commission has classified municipal paid parking spaces as “publicly accessible”.
(If the link above is not active, you can check the schedule at https://www.hodgsonruss.com/assets/htmldocuments/July%2028%202020%20-%20Hodgson%20Russ%20Renewable%20Energy%20Client%20Alert.pdf recall .)
IV. Medium and heavy commercial vehicles
Recognizing the need to advance the electrification of vans, panel vans, plumbing trucks and other medium and heavy vehicles, the Commission expanded its fleet assessment service to larger vehicle classes and implemented the fleet-ready medium and heavy duty fleet pilot program. The program will support direct reductions in diesel emissions in green communities through the electrification of medium / heavy vehicles and trucks.
To qualify, entrants must also seek and receive assistance from NYSERDA’s existing New York Truck Voucher Incentive Program or the New York City Clean Trucks program administered by the NYC Department of Transportation. This support shows that a fleet owner has replaced an older, heavily polluting diesel truck with clean vehicle technology that dramatically reduces or eliminates exhaust pollution. Participants in the pilot program who purchase the vehicle through NYSERDA’s Truck Voucher Incentive Program will receive up to 90 percent of the cost of upgrading the infrastructure on the supply side.
V. Next steps
While the Make Ready ordering is broad, it doesn’t remove arguably the biggest barrier to EV station adoption – the retail price design that allows for little use in the early years of deployment. In the service area of Con Edison in particular, inquiry fees were an obstacle to the increased use of EV infrastructure.
Industry will seek further reforms in this area to prepare New York for electric transportation.