Opinion | A strategy for electrification of transportation in Michigan

In 2022, the state of Michigan set ambitious climate goals to reach carbon neutrality by 2050. With transportation accounting for 30% of the state’s emissions, the transition to electric vehicles (EVs) and establishing the necessary infrastructure to support them is critical to achieving these goals. Already, automakers and EV charging and battery manufacturers are making major investments into the future of mobility in Michigan. 

Michigan leads the nation in EV and battery investments made by automakers and suppliers, totaling $34 billion since 2018, or 21% of all planned investments in the U.S. These investments are transforming how vehicles are made. But at the same time, how vehicles are actually driven in the state of Michigan is transforming as well. There are big plans in place for the charging infrastructure that allows drivers to switch to EVs. To get ready for an anticipated 2 million EVs on Michigan roads by 2030, the state has adopted a goal of deploying 100,000 EV chargers by that year (including at-home chargers, workplace chargers, and public chargers).

To achieve these goals, Michigan needs a cohesive statewide coordinated strategy in place. Such a strategy is outlined in “Transportation Electrification in Michigan: A Roadmap of State Policy Actions,” a new report developed by the Michigan Energy Innovation Business Council (Michigan EIBC), Clean Fuels Michigan, the Institute for Energy Innovation and the Michigan Clean Fuels Institute.

With a focus on equity that ensures no community is left behind in the transition to EVs, the report provides comprehensive recommendations to state government officials, legislators, regulators and utilities to guide effective policies that enable charging infrastructure deployment, EV adoption and grid reliability. Key recommendations include improving long-term utility planning to enable grid investments to support charging infrastructure, passing a Clean Fuel Standard and providing more incentives for individuals and businesses seeking to purchase EVs and EV chargers. 

While the U.S. Department of Energy estimates that 68% of charging for the 33 million EVs expected to be on the road in 2030 will occur at drivers’ residences, not all current or prospective EV drivers have easy access to at-home charging due to factors such as urban density, the age of the home’s construction, grid capacity and access to a specific parking space. Consequently, providing reliable, publicly accessible charging is critical to improving consumer confidence that they will not be stranded if they purchase an EV – often referred to as “range anxiety.”

As construction of state and federally funded public charging sites begins and utilities continue to expand their incentive programs, the future for EV charging in Michigan is bright. The implementation of these funds has not come without challenges, however. Customers and potential charging site hosts are often unaware of these programs or face information overload, having difficulty understanding which programs are right for them, leading to increased frustration and sometimes project abandonment. Consequently, more needs to be done to not only expand incentive programs, but also, to effectively support and educate prospective participants.

In addition, Michigan’s grid, already plagued by reliability issues, will need to be able to support the growth in grid load demand from transportation electrification. Doing so requires a lot of advanced planning so the right equipment upgrades, like additional transformers, are in place well before they are necessary. But utility EV investments are currently limited to short planning horizons and stymied by long lead times for key pieces of equipment, making it incredibly difficult for utilities to make comprehensive, proactive and strategic investments to support transportation electrification over a longer planning horizon. As a result, when customers — like corporate fleets and municipal transit systems — want to go electric, they face long wait times for the necessary charging infrastructure to be able to be put in place. 

To solve these issues, the report recommends that the legislature require utilities to file multi-year transportation electrification plans as separate cases with a long-enough time horizon for integration with distribution grid planning, appropriate scenario analyses, and benefit-cost analyses.

Establishing and implementing a clean fuel standard, in which the state sets a target for reducing the carbon intensity of all fuels in the transportation sector, also represents a critical opportunity to enable increased access to charging infrastructure. Under this policy, providers that produce fuel with fewer emissions generate credits that could be sold, helping to finance more charging stations and other projects to further reduce transportation-related emissions. Already in place in states like California, Oregon and Washington, a clean fuel standard, if done right, would not only reduce emissions from transportation but could generate revenue to rapidly accelerate the deployment of critical EV charging infrastructure.

The transition to EVs is inevitable, and the state of Michigan can create a cohesive ecosystem that supports that transition. But planning is essential. The “Transportation Electrification in Michigan: A Roadmap of State Policy Actions” report illuminates the path forward to ensure the state is as EV-ready as possible.