A Biden Administration Official is Set to Revolutionize America's Electric Vehicle Charging Network | Greenbiz
The public electric vehicle charging network in America is funded by the federal government through Gabe Klein.
Klein was a famous and renowned leader in the transportation industry last year. He had already headed up transportation departments in both Chicago and Washington, D.C., started his own mobility consulting firm, and gave advice and investments to transportation startups. If you needed answers about electric scooters and local government regulations, he was one of the top people you would reach out to.
Currently, Klein is leading the efforts of America to expand the number of public EV chargers due to the increase in the domestic market for EVs. He has been appointed to lead a unique Joint Office of Energy and Transportation, which was established by the Departments of Energy and Transportation. This office has a $7.5 billion budget designated for funding EV infrastructure.
Klein recently had a chat with GreenBiz to talk about what the new office will do to improve the dependability of chargers, make electric vehicles more reasonably priced, and assist city-dwelling renters with electric vehicle needs. The interview has been shortened and edited for clarity.
Katie Fehrenbacher is asking why it is necessary for the United States to have a combined department dedicated to both transportation and energy. She is curious about the importance of establishing such an office at this particular moment.
Gabe Klein believes that there are numerous reasons why it's crucial to break down the silos between energy and transportation. President Joe Biden recognized this when he spearheaded this initiative with Congress. They understood that it was essential to do so and worked quickly towards it.
Since 2016, transportation has been the biggest contributor to greenhouse gas emissions. If we want to tackle this problem, we can't ignore the role of transportation. The president also recognizes that this presents a great chance to generate employment.
From the beginning, there were a few things that stood out to me. Firstly, they aimed to dismantle the dividing walls and put emphasis on the results for the public. Secondly, they were committed to promoting fairness and Justice40, a program that aimed to ensure that marginalized communities received benefits from federal investments. Lastly, they weren't just paying lip service to environmental concerns. This was a major concern for the administration and it formed a core pillar of their policies.
What are some of the most important things you've learned since starting the job seven months ago, Fehrenbacher?
Klein previously worked in transportation and has been passionate about energy and climate for a long time. Recently, the energy industry has gone through a significant change, similar to what transportation went through in the last decade. As a result, Klein had to learn a lot to catch up. However, she has access to the incredible expertise at DOE, which is helping her learn quickly. On the other hand, she can use her background and skills to teach and contribute to the team.
Many individuals are experiencing a new phenomenon. The production of electric vehicles (EVs) has only been a significant pursuit for two decades, alongside the development of renewable and decentralized energy. This can be considered a complete departure from the traditional method of powering economies with fossil fuels. Considered as a paradigm shift, it alters the way the economy functions. With all of these factors combined, one can realize that everyone is adapting and gaining knowledge, even the specialists.
However, it's not enough to only have a tool like a hammer. We also desire to have incentives like carrots, isn't that right? Therefore, we aim to collaborate closely with the business sector to ensure that they can meet the set requirements.
A recent research revealed that almost half of the population is not interested in purchasing an electric vehicle for their next car. Personally, I find the fact that 53% of the people are willing to drive an EV in 2023 quite impressive. I believe that as time passes by, the number of people interested in buying an EV will increase and by 2024, 2025, or 2026, the number of people willing to drive an electric vehicle may be around two-thirds of the country. Eventually, we may witness up to 80 or 90 percent of people choosing EVs as their primary mode of transportation.
On the flip side, numerous individuals reside in cities and may not be purchasing as many cars. Instead, they may be utilizing alternative transportation models like renting an electric vehicle from Hertz (who has a whopping 360,000 of them on order), car-sharing services, or using electric bikes and scooters. It's evident that there will be a change in the way people travel and consume energy.
Fehrenbacher mentioned urban living and expressed that they reside in a rental apartment located in San Francisco. They expressed their disappointment in not being able to own an electric vehicle (EV) due to the lack of charging options available. Fehrenbacher inquired about how the joint office is addressing the issues that multi-tenant dwellings pose for EV charging.
Klein explains that their main aim is to provide electric transportation options to everyone. They understand that not everyone needs to own a vehicle and can use other modes of transportation like public transit, cycling, or occasionally renting a car. However, if someone decides to purchase an electric vehicle, they want to ensure that charging options are available at their apartment complex. There are a few ways they plan to make this happen.
The NEVI program requires states to have a minimum of four charging ports that can generate 150 kilowatts every 50 miles. Once this requirement is met, the leftover funds can be used for Level 2 charging as needed. The Charging and Fueling Infrastructure grant is also available for urban areas to provide access to charging, whether it's located on or off the street. This initiative aims to provide charging options to those who do not have access to it.
When we examine a bustling city like New York, we find that nearly half of the car owners do not have a designated parking spot and are forced to street park. It is important to cater to the needs of everyone, not just a select few. The placement of charging stations takes on a unique appearance when situated in an urban setting. Similar to bike rental stations, they should be placed every five minutes of walking distance. Thus, the process of planning and implementing charging stations in cities differs greatly from that in rural or highway areas.
Fehrenbacher inquired whether the reliability of public charging has been a concern that is escalating. Do the collaborative officials play a role in resolving this problem with the implementation of certain initiatives?
Klein said they announced a plan a month ago to improve reliability which is one of their top priorities. They are creating a reliability consortium in collaboration with industry, government, non-profits and advocates to quickly improve reliability. They will release more information on this in a few weeks. They plan to focus on the 20% of issues that lead to 80% of failures.
Typically, we have a standard of 97 percent reliability. Currently, having one out of every four stations not functioning on average would not be appropriate if you plan on receiving financial support from the government.
We don't just want to rely on punishment, we also want to offer incentives. Therefore, we aim to collaborate with businesses to ensure they can reach the required standards. It's important that companies work together instead of competing against each other. Achieving 97% uptime may seem challenging, but some businesses are already doing it successfully. We're committed to working with everyone to make sure we all reach our goals. Our role is to gather and bring everyone together to achieve our shared objectives.
Fehrenbacher: What are the major obstacles that the joint office is facing?
Klein discussed several difficulties that need to be addressed, including macro-level problems such as reliability and affordability. The IRA and BIL will significantly decrease costs, making electric vehicles like the Chevy Bolt available for less than $20,000, which may have previously been considered too expensive by some consumers. Additionally, there are now more than 140,000 chargers accessible to EV owners. Despite the challenges, Klein is optimistic and believes that progress is being made at a rapid pace.
In my opinion, it's vital to raise consciousness and alter viewpoints. I foresee this occurring in the upcoming years. I have faith that this progress will come about effortlessly, as long as we perform exceptionally well.
Our main responsibility is to always convey the truth and be forthcoming about how things are currently panning out. However, it is equally important to spread knowledge about the multitude of amazing events taking place and the speed at which they are occurring. This awareness serves to highlight the promising future that lies ahead. Rest assured that we are fully committed to providing unwavering support in this pursuit.
Incredible resources are available in both government and non-governmental organizations. Our entrepreneurs are among the finest on the planet, and let's face it, we are unmatched in technology and electrification. By bringing outstanding individuals together, there is no obstacle that cannot be overcome. With collaboration through the reliability consortium or the new federal advisory working group, the possibilities are endless.
We're facing some really big obstacles, but at the same time, there are some enormous prospects too. What's really impressive is how the government is laying out their plans and deadlines in a clear and honest way. For example, if we aim to have half of the light duty vehicles manufactured to be electric by 2030, then we need to have more than 500,000 charging stations available for public use. We'll also need millions of private ones too.
Fehrenbacher pondered, which is tougher: commencing a new entrepreneur venture or launching a fresh joint federal agency?
Klein expressed that there are contrasting factors in running a business versus working in government. In business, there is maximum control but limited resources, while in government, there are more resources but also more bureaucratic hurdles. This creates a challenge when working with higher-ups who may not share the same urgency as an entrepreneur. Therefore, Klein identifies as an "intrapreneur" and strives to work as efficiently as possible within the government system.
I have felt enthusiastic about running into familiar faces in this government and workplace. However, it's not everyone since bureaucracy can make things difficult. It's not the same as working in the city where you can physically install stations on the ground.
However, if you consider the extent of influence and the capability to bring about constructive modifications, it goes beyond boundaries, both within the country and globally. The European Union, for instance, has recently introduced its version of a program similar to NEVI, patterned after our program. It is a satisfying feeling to know that our actions have an impact that extends to the rest of the planet.
I refer to myself as an intrapreneur in the government sector, and my aim is to work at the most rapid pace achievable by humans.
Sometimes we feel the desire to go at a quicker pace in our daily lives. However, it's important to remember that there are benefits to taking our time and being deliberate. We prioritize accuracy and strive to achieve our goals accurately.
This is a unique chance to do things correctly. Therefore, we must ensure that we do them properly. This involves taking the time to hear from many individuals.
Fehrenbacher asked Gabe about his research on the deployment of EV charging stations in other countries, specifically Norway. She inquired about the lessons he learned from his study that could be useful for the joint office's deployment of these stations.
Klein stated that if one examines the BIL and IRA, they will find that they have similarities to the incentives in Northern Europe. However, Klein also mentioned that it's important to keep in mind that Norway, a country often referenced for its successful policies, has a significantly smaller population than the United States. With only 5.3 million people, it's comparable in size to South Carolina, which is the 23rd most populated state. Klein emphasized that the challenges faced by the US are different due to its larger and less homogenous population.
Our state is highly sensitive to context, similar to around 100 Norways combined. Every state in our nation has unique needs based on geographic location, demographics and population. Therefore, the requirements of Wyoming or North Dakota can differ significantly from that of Washington, D.C. or Miami. Nonetheless, we can undoubtedly gain valuable insights from their practices and approaches.
Exciting developments are being made in Amsterdam and the U.K. with chargers that use poles. These chargers are being put in place quickly and are being made more affordable.
There are various intriguing ways of conducting business nowadays. One of these involves the use of aggregators to facilitate payment services that are compatible with the most well-known electric vehicle service providers. By utilizing this method, a single application can be utilized to access all of the available charging stations.
We also collaborated with many government officials to facilitate the expansion of the Tesla network, for example. This is a process that Tesla had already initiated in Norway and some other nations. Therefore, I believe that we constantly gain knowledge and grow.
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