Arizona Statewide Transportation Electrification Plan

Electric vehicle (EV) technology has progressed dramatically in recent years and is beginning to create changes to our conventional transportation system. Transportation electrification (TE) can provide significant benefits to EV purchasers and utility customers generally, improves air quality, and aids in the growth of the Arizona economy. To unlock this value, Arizona’s electric utilities along with regulatory agencies, policymakers, automakers, third-party charging service providers, and other stakeholders must work together to support EV adoption while also integrating this new load into the existing electricity system.

Arizona’s Statewide Transportation Electrification Plan is intended to provide a roadmap for TE in our state, focused on realizing the associated air quality and economic development benefits for all residents along with understanding the impact of EV charging on the grid. In 2020, Arizona utilities – Arizona Public Service (APS), Tucson Electric Power (TEP), Salt River Project (SRP) – and other stakeholders will discuss proposed TE programs and initiatives with the ultimate goal of drafting a plan to implement TE in Arizona.

The final Phase II Plan was filed with the ACC on April 1, 2021.

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Background

Arizona Public Service (APS) and Tucson Electric Power (TEP) hired E3 and ILLUME Advising to conduct research, evaluation, and facilitation activities for the Statewide Transportation Electrification planning process in Arizona. E3 will conduct a number of distinct yet related analyses to assess the full range of costs, benefits, and opportunities presented by electrification of different transportation segments in Arizona. ILLUME will lead stakeholder facilitation efforts. For additional information, please review the Statewide Electrification Plan – Phase I which was filed with the Arizona Corporation Commission.

For additional information, please review the Statewide Electrification Plan – Phase I which was filed with the Arizona Corporate Commission. Read a brief summary of the Phase II Arizona Statewide Transportation Electrification scope here.

 

For more than 130 years, our company has been providing safe, affordable and reliable energy to millions of homes and businesses across Arizona. We are also at the forefront of a dramatic transition that responds to a desire expressed by stakeholders to consider impacts of climate change. Without question, the energy industry has a critical role to play in decarbonizing the U.S. economy, and APS is committed to doing our part. We are making a commitment to Arizona. By 2050, APS will deliver 100 percent clean, carbon–free and affordable electricity to our customers. This goal includes a nearer–term 2030 target of 65 percent clean energy, with 45 percent of our generation portfolio coming from renewable energy. New APS programs are incentivizing customers to incorporate advanced technologies in their homes and businesses to help maximize the value of abundant solar energy. In addition, we are encouraging the widespread adoption of modern energy efficiency technologies, including smart thermostats, electric vehicle charging infrastructure, energy storage and more. Learn more by visiting APS.com

 

Tucson Electric Power (TEP) provides more than just safe, reliable and affordable electric service to Southern Arizona residents. We offer customers a wide range of incentivized programs to help them reduce their energy costs while we work together toward a cleaner, greener future, with more renewables and a smaller carbon footprint. We know the road to a sustainable future is best traveled in an electric vehicle. Making our vehicles cleaner is the fastest way we can get to a brighter tomorrow. That’s why TEP is playing a key role in driving the development of new infrastructure throughout our community to support EV adoption in the commercial and residential markets. Visit TEP.com for more information.

 

Energy + Environmental Economics (E3) is an energy consulting firm that helps regulators, policy makers, utilities, developers, and investors make the best strategic decisions possible as they implement new public policies, respond to technological advances, and address customers’ shifting expectations. E3 works with clients from all sectors of the electricity industry, enabling us to provide a 360-degree understanding of markets, planning, policy, regulation, and environmental factors. We are committed to delivering clear, unbiased analyses that help clients make informed decisions. E3 has helped to develop Strategic Transportation Electrification Plans for a number of utilities in various states, including Arizona, Colorado and Hawaii.

 

ILLUME is a world-class research consultancy that supports the energy industry through cutting-edge social and data-science research. We have served more than 50 public and investor-owned utilities across the country delivering insights that focus on the human dimensions of clean energy. ILLUME provides our clients a holistic and boutique consulting experience drawing on a deep bench of technical experts – from backgrounds as varied as anthropology to economics to public health to engineering to physics. We have facilitated stakeholder workshops and roundtables in partnership with several other utility companies in other states including Georgia, Massachusetts, and California.

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Industry Update

Facilitated by Dr. Nancy E. Ryan, the Industry Update held on July 29, 2020 was designed as an informational overview of current EV technology, market trends, and public policy. This high-level, non-technical presentation was intended to provide a common knowledge base to stakeholders and other parties with an interest in the Arizona Transportation Electrification Strategic Plan. Dr. Ryan’s presentation encompassed light-, medium- and heavy-duty vehicles as well as micro-mobility, shared mobility, transit, transportation refrigeration units, truck stop electrification and non-road vehicles/equipment (mining and construction equipment). Topics covered in the technology and market survey included:

  • Technological maturity of different classes of EVs (e.g. cars, trucks, buses)
  • State of EV adoption in the US and other countries
  • Projected growth of domestic and global EV markets and possible impact of COVID-19 Pandemic
  • State of charging technology
  • Smart charging, including vehicle-to-grid and vehicle-to-building capabilities
  • Current availability and future plans to deploy EV chargers in Arizona
  • Business models for providing charging services
  • Barriers to EV adoption by consumers and businesses
  • Challenges and opportunities that utilities face as they serve this growing electrical load

Dr. Ryan surveyed key policy developments and trends in states active in supporting transportation electrification. She also summarized recent utility proposals, regulatory decisions, legislation and other policies shaping the commercial landscape for electric vehicles around the United States. In addition, Dr. Ryan covered topics in the policy survey including: 1) Utility incentives and funding for EVSE and make-ready infrastructure, 2) Role of regulated utilities vs. competitive market, 3) Underserved and disadvantaged communities, and 4) Sharing of costs and benefits between EV owners and other utility customers. Click here to view the presentation slide deck. The video of the Industry Update is included below.

 

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Workshop 1

Date: Tuesday, August 11, 2020

Facilitated by Energy + Environmental Economics (E3) and ILLUME Advising, Workshop 1 brought together over 120 participants from across Arizona to discuss the development of a Statewide Transportation Electrification (TE) Plan. Ben Shapiro, Consultant and Project Manager for E3 presented an overview of the Phase II Plan, including the project scope, a detailed EV cost benefit analysis and methodology, several additional analyses E3 will be conducting, and an explanation of how the project will merge analytical results and stakeholder inputs to identify key TE barriers and related enabling actions.

Kimberly Jaeger Johnson, ILLUME Managing Consultant presented the working group process before directing stakeholders to break out into individual Working Groups (facilitated by ILLUME and E3, with utility representatives present) to discuss expectations, define leadership roles, review activities, inputs, and crowdsourcing approaches, and provide space for stakeholders to discuss the scope of each working group, and redefine as necessary.

Panelists (E3, ILLUME, and utility representatives) attempted to answer as many stakeholder questions during the live workshop as possible. We kept a detailed log of unanswered questions. After the Workshop, we addressed each unanswered question and published responses in the form of a memo. Subsequent answers are provided HERE.

A video of Workshop 1 is provided below. You can read the Workshop 1 report here, which includes outcomes from the workshop and a summary of stakeholder responses to the Stakeholder Survey.

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Workshop 2

Date: Tuesday, November 10, 2020

Facilitated by Energy + Environmental Economics (E3) and ILLUME Advising, LLC (the E3 Team) on behalf of Arizona Public Service (APS) and Tucson Electric Power (TEP), Workshop 2 brought together approximately 160 participants from across Arizona to discuss the development of a Statewide Transportation Electrification (TE) Plan through a virtual, online meeting space. Ben Shapiro, Senior Consultant and Project Manager for E3, presented an overview of the findings from the market assessment, cost-benefit analysis, and air quality potential analysis. We provide a summary of E3’s presentation below. A copy of the E3 presentation slides can be found here.

Kimberly Jaeger Johnson, ILLUME Managing Consultant, presented a high-level description of working group activities, then introduced working group chairs to share an update on their groups’ activities, key takeaways to date, and next steps. We heard updates from the chairs of each of the five working groups: Electric Vehicle (EV) Infrastructure, Equity, Programs and Partnerships, Goods Movement and Transit, and Vehicle Grid Integration. We provide a summary of the working group updates below. The working group presentation slides can be found here.

A video of Workshop 2 is provided below. Panelists (E3, ILLUME, and utility representatives) attempted to answer as many stakeholder questions during the live workshop as possible. We kept a detailed log of unanswered questions. After the workshop, we addressed each unanswered question and published responses in the form of a memo here .

AZ TE Follow-Up Meeting on Additional Insight

On December 15, 2020 E3 hosted an informal meeting for interested stakeholders to answer questions regarding the modeling involved in the cost benefit analysis and the air quality / health co-benefits analysis being conducted as part of the Phase II TE Plan. The presentation slides can be found here. A video of this meeting is provided below.

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Workshop 3

Date: Wednesday, February 10, 2021

Facilitated by Energy + Environmental Economics (E3) and ILLUME Advising, LLC (the E3 Team) on behalf of Arizona Public Service (APS) and Tucson Electric Power (TEP), Workshop 3 brought together approximately 170 participants from across Arizona to discuss the development of a Statewide Transportation Electrification (TE) Plan through a virtual, online meeting space. Ben Shapiro, Senior Consultant and Project Manager for E3, presented a summary of the draft Phase II TE Plan, including the Gaps Analysis and Recommended Actions informed by the working groups. After the workshop, the E3 Team provided stakeholders with the full draft of the Phase II TE Plan, and a feedback form to collect comments and suggestions. A copy of the E3 presentation slides can be found here.

A video of Workshop 3 is provided below. Panelists (E3, ILLUME, and utility representatives) attempted to answer as many stakeholder questions during the live workshop as possible. We kept a detailed log of unanswered questions. After the workshop, we addressed each unanswered question and published responses in the form of a memo here.

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Stakeholder Working Groups

Stakeholder Engagement Framework

To provide structure for the working groups participating in the development of the Phase II TE Plan, we developed the Stakeholder Engagement Framework . The framework includes working group objectives (as outlined below), terms of engagement, and expectations of working group chairs.

Working Group Guidance

Introduction

There are five stakeholder working groups focused on the specific topic areas noted below. These topic areas may expand to include additional items not indicated here. Each group will discuss planning materials and collaboratively put forth key points of feedback for consideration in the planning process.

We have outlined a number of questions from various sources including some that came from the Southwest Energy Efficiency Project’s (SWEEP), Arizona Transportation Electrification Forum held in October 2019 to provide guidance to the working groups.  We welcome working group members to develop additional questions as they may arise.

How Working Group input will be used

Working group findings and recommendations will be incorporated into the Phase II TE plan and shared with the broader stakeholder group at the upcoming workshops. Specifically, recommendations and proposed actions will help to inform:

  • The “Gaps Analysis” E3 is conducting to identify barriers to TE and initiatives to overcome them.
  • The coordinated actions required by utility and non-utility partners to support TE.
  • Additional analysis by E3, if feasible.

It is important to APS and TEP that stakeholders’ voices are heard and reflected in the final deliverable to ensure that Arizona can support a robust TE sector.

1. EV Infrastructure

1.1 Objectives and Ties to Phase II TE Plan

  • Identify key barriers and opportunities to develop sufficient charging capabilities to support anticipated levels of EV adoption.
  • Identify and prioritize, by lead stakeholder, the near-, medium- and long-term actions necessary to enable greater TE in Arizona sufficient to meet the outlined adoption goal.

1.2 Discussion Questions

Charging Deployment

  • What are the barriers and best policies for enabling and expanding Level 2 EV Infrastructure to multi-unit dwellings, vehicle fleets and workplaces?
  • Given the forecast for EV chargers, what are the primary barriers to meeting this level of development of EV Infrastructure, including different types (Level 2, DCFC) and locations (home, workplace, public)?
  • What missed opportunities for EV charging station infrastructure exist across the state? What should be done to address these missed opportunities?
  • Which organizations and/or entities are best positioned to overcome these barriers?
  • Where do potentials for collaboration exist (e.g., local governments working with the utilities and electric vehicle service providers) to develop building codes and permitting processes that streamline installation of EV supply equipment (EVSE) without compromising safety considerations.
  • What are the challenges around interoperability and open charging protocols for both Level 2 and DCFC?

Ownership of Infrastructure

  • How will/should different charging station ownership models play out in Arizona (i.e. utility versus third-party owned)?

Building Codes and Policies

  • How can we overcome zoning codes issues that may hinder the development of EVSE in multi-family residences or commercialized zones?
  • What opportunities exist to adopt residential and commercial EV-ready building codes to spur EV adoption, and can performance-based incentives play a role?

1.3 Group Support Contact Information

2. Equity

2.1 Objectives and Ties to Phase II TE Plan

  • Determine how EV policies and programs can grow access to Transportation Electrification in underserved communities.
  • Identify key considerations and opportunities to ensure all Arizonans can share in the benefits offered by EVs and related technologies, especially those parts of the community which have historically been underserved or disadvantaged.
  • Identify and prioritize, by lead stakeholder, the near-, medium- and long-term actions necessary to ensure equity in the development of programs and deployment of TE infrastructure in Arizona.

2.2 Discussion Questions

Accessibility

  • Identify the primary ways in which the conventional transportation sector produces or exacerbates existing inequities between or within communities across the state.
  • Discuss how increasing electrification of transportation modes and options in Arizona may perpetuate existing inequities; develop recommendations for how this can be avoided or mitigated.
  • Investigate how equity in TE is being handled in other jurisdictions; report out on “best practices,” as well as any pitfalls to avoid.
  • Research the effectiveness of different incentive programs (e.g., upfront rebates, financing options, and discounted retail rates), awareness campaigns, or other programs that may focus on including underserved or disadvantaged communities in the transition to TE.
  • Develop potential metrics for assessing whether existing or initial TE programs and offerings in Arizona are sufficiently addressing equity concerns.
  • How can EVs and related technology be made accessible to these consumers in ways that address their mobility needs and energy and transportation budget?

Funding Mechanisms

  • How can tools like vouchers, rebates, and financing assistance programs be designed and implemented to bring down the costs of EV ownership for low-income consumers?

Education and Outreach

  • How can we promote EV awareness in underserved and hard-to-reach communities? What are the channels of communication for these populations? Who are the trusted messengers? How can we develop plans to educate and promote EVs as an option to these communities?
  • How can we educate auto dealers on EV benefits and incentives, and especially on available incentives for low-income consumers?

Employment Opportunities

  • How can Arizona’s growing EV economy prioritize and target underserved community members for hiring and training?

2.3 Group Support Contact Information

3. Programs and Partnerships

3.1 Objectives and Ties to Phase II TE Plan

  • Identify key opportunities and synergies for the development of programs and partnerships to support the broad adoption of EVs in Arizona.
  • Map the core competencies of different TE stakeholders to the barriers which need to be addressed; identify which players are best positioned to help overcome specific barriers, and where gaps remain.

3.2 Discussion Questions

Program and Policy Design

  • What best practices, program and incentive models exist in other states for partnerships between government entities, fleets, Transportation Network Companies (TNCs), nonprofits, and industry to expand EV education and outreach? Which of these practices/models are ripe for adoption and implementation in Arizona?
  • What programs and incentives exist and/or are the most effective nationally for encouraging EV adoption? Which of these offerings are ripe for adoption and implementation in Arizona?
  • What is the potential for pilot programs to test new program models and concepts? What should the process be for proposing and funding smaller-scale pilot programs outside of rate cases?
  • What are the primary barriers to further adoption of EVs in different vehicle segments and from the perspective of different stakeholders, as well as potential actions for overcoming these barriers?

3.3 Group Support Contact Information

4. Goods Movement and Transit

4.1 Objectives and Ties to Phase II TE Plan

  • Describe and document the primary barriers or challenges to electrification of different medium duty and heavy duty (MD/HD) vehicles, focusing on distinctions between these vehicles and light-duty vehicles. Examples may include lack of sufficient charging infrastructure to power these larger vehicles, availability of EV models for the required use cases, and load management challenges due to the size of charging loads, among others.
  • Identify and prioritize, by lead stakeholder, the near-, medium- and long-term actions necessary to enable MD/HD TE in Arizona.
  • Discuss EV load impacts and related management or mitigation strategies to integrate electric MD/HD vehicles into the electricity system.
  • Document the specific needs of fleet operators, transit agencies and other stakeholders.

4.2 Discussion Questions

Charging Deployment

  • Considering the work under the Alternative Fuel Corridor Study, are there other locations that should be considered? [1]

Partnerships

  • Identify the best practices around partnerships to catalyze electrification of transit systems and delivery van fleet electrification.
  • What are the barriers related to inland ports and ports of entry?

Grid and Resource Planning Impacts

  • Given the potential impacts of MD/HD vehicles on the grid, what are the opportunities around managed charging and non-wire alternatives to assist in reducing those impacts?
  • What are the energy demand and load effects associated with the outlined adoption goals?

4.3 Group Support Contact Information

5. Vehicle Grid Integration (VGI)

5.1 Objectives and Ties to the Phase II TE Plan

  • Provide guidance on the priority VGI opportunities to be explored and developed in Arizona including managed charging, demand response, vehicle-to-home and vehicle-to-building.
  • Develop recommendations for VGI programs and partnerships to prioritize, and the specific actions which the utilities and other TE stakeholders should take to realize these opportunities. Focus on near-term actions, while documenting medium- and long-term needs to develop a comprehensive approach to VGI planning and use cases.

5.2 Discussion Questions

Grid Resilience

  • What is the current state of technology of vehicle-to-grid and associated residential and business applications?

Demand Response

  • How can utility efficiency and demand response programs help reduce projected demand resulting from EV charging?

Managed Charging

  • What are the resource planning impacts if EV charging occurs with or without control or coordination (i.e. managed versus unmanaged charging)?

Resource Planning

  • What are the resource planning implications for various organizations of more than one million electric vehicles on Arizona’s roads by 2030?
  • What is the relationship between EV charging, renewable energy, and intermittent energy resources? How can we leverage EV deployment to alleviate the duck curve? Under what use cases could increased EV deployment exacerbate the duck curve? How can this information be used to inform other EV offerings?
  • What are the best practices around managed charging and other VGI programs and pilots? Which ones are ripe to be implemented in Arizona?

5.3 Group Support Contact Information

 

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Resources

The resources below are available to stakeholders engaging in the feedback process. These tools will remain available throughout the duration of the project.

Project Calendar

Working groups schedule their meetings using Microsoft Teams. The project calendar shows all scheduled meetings. This calendar is only visible to participating stakeholders. Stakeholders must be signed in to their Microsoft accounts to access the calendar.

Please click here to view the project calendar.

SharePoint

The SharePoint site serves as a library for studies, inputs, and materials provided by the working groups. The SharePoint site is only open to participating stakeholders. Stakeholders must signed in to their Microsoft account to access the SharePoint site. The tutorial below shows how to use the SharePoint site. Please click here to access SharePoint.

Microsoft Teams

The Microsoft Teams environment is a communications platform where each working group has their own channel to self-organize communications, calendars, and deliverable dates. Working groups can utilize the Teams video conferencing technology for meetings. The Teams environment is only open to participating stakeholders. Stakeholders must signed in to their Microsoft account to access Teams. The tutorial below shows how to use the Teams environment. Please click here to access Teams.

 

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Share Your Thoughts

Want to share your input? Please take a few minutes to complete this stakeholder survey. This survey is your opportunity to share your thoughts on TE in Arizona. To complete the survey, click this link or paste it into your browser:

https://survey.az1.qualtrics.com/jfe/form/SV_0GIaEBiwifQQUfP

 

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