CREJ - Multifamily Properties Quarterly - August 2017
Electric vehicles and hybrids comprise only about 2 percent of auto sales in the U.S. today, but it is predicted that 54 percent of all cars worldwide will be electric by 2040, according to a new report from Bloomberg New Energy Finance. Such a dramatic shift in the global auto market will have enormous benefits for the climate, especially as renewable energy sources provide a greater percentage of the electricity required to recharge the vehicles’ batteries. When a third of cars are electric, around 8 million barrels of transportation fuel per day would be displaced, the report said. On July 5, Volvo became the first mainstream automaker to announce a phase out of traditional petroleum-powered vehicles in favor of EVs. Starting in 2019, all new Volvo models will be hybrids or pure electrics. Most carmakers expect the share of electric vehicles sold to grow rapidly as the technology improves, prices fall and public charging stations become more common. Rapid advances in self-driving technology will boost a transition to battery power, because it is easier to link the software to electric motors. The cost for the lithium-ion batteries used to power EVs is falling much faster than expected thanks to improving technology and increased supply. Batteries are the most expensive component in an EV and the cost already has come down 73 percent on a per kilowatt basis since 2010. This means electric cars will not only be cleaner than petroleum powered vehicles but also cheaper in most countries — as early as 2025. “Range anxiety” has limited electric vehicle adoption, but new cars like the Chevy Bolt and the Tesla Model 3 can travel over 200 miles on a single charge. EVs with shorter ranges can still be used for 95 percent of day trips in the U.S. Most people drive less than 30 miles in any given day. • More charging infrastructure is needed. To accommodate the shift to electric transportation, charging infrastructure will need to be available at highway stops, on city streets and in garages. To meet the expected future demand for charging stations in multifamily housing developments, it is less expensive to install conduit for the stations with each new development than to retrofit later. Green building codes in Boulder and Denver require that a certain amount of new parking spaces are prepared for charging stations. • Grants and tax credits are available. To improve air quality and encourage EV sales, Colorado offers some of the most generous programs to encourage electric vehicle growth in the U.S. A $5,000 state tax credit may be combined with a federal tax credit of up to $7,500 per car. Local group-buy programs have further reduced the selling price for many models and Xcel Energy recently offered a $10,000 rebate on Nissan Leafs. The Regional Air Quality Council and Colorado Energy Office operate a joint grant program to support the installation of charging stations throughout the state. Charge Ahead Colorado grants of up to $6,260 are available for the installation of a dual-port Level 2 station. The next two grant rounds are scheduled for Sept. 15-Oct. 15 and Jan. 15-Feb. 15, 2018. And, there’s more funding on the way from the Volkswagen Dieselgate settlement. VW agreed to settle allegations that it violated the federal Clean Air Act by selling diesel vehicles with software that allowed them to cheat on air pollution tests. To make amends, VW will spend $2 billion on public charging stations and hydrogen fueling equipment over the next 10 years. Denver was chosen as one of 11 cities that will receive extra funding. The state of Colorado already received a separate stipend of $68 million from VW to spend on charging infrastructure and to replace fossil fuel vehicles with cleaner vehicles. The Colorado Department of Public Health and Environment will oversee spending of the state’s settlement money. The department requested project proposals for the first round of funding, but has not yet announced awards. CDPHE likely will spend 15 percent (over $10 million) of the settlement money on expanding the state’s electric vehicle infrastructure. That’s enough to build 60 DC fast charging stations along Colorado’s major highways. They also may use the money to electrify heavy-duty vehicles, such as buying up to 125 new electric buses. Some of the money could be funneled into existing programs, like the Charge Ahead Colorado grant program. • Charging stations. When considering adding charging stations to your multifamily community, it is important to know the options. The higher the level, the faster the charge. •Level 1 charging. EVs can charge using a traditional wall socket, which will provide 2 to 5 miles per hour of charging. This is the slowest way to fully charge vehicles. If you would like to make outlets available for residents, it is recommended the outlets are put on their own circuits to avoid overloading the breakers. The charging spots should be located where charging cords do not cross a walkway and create a tripping hazard. •Level 2 charging. Standard charging stations deliver 240 volts of electricity to a battery and provide vehicles with 10 to 20 miles per hour of charge. This is the appropriate level for multifamily housing, office parks and other places where cars typically are parked for two to six hours at a time. • DC fast charging. This is the fastest way to charge a vehicle. Fast chargers provide 60-80 miles of range to an EV in about 20 minutes. Level 3 stations use a DC current of 480 volts. These chargers are being deployed along highways. Currently there are two differing standards and plug configurations for fast charging, depending on the vehicle manufacturer. So many of these stations provide both standards.