8 Outside of the Mitigation Trust, Volkswagen will also invest $2 billion in charging infrastructure and in the promotion of zero-emission vehicles-such as battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. States may allocate up to 15 percent of their funds to build electric vehicle charging infrastructure. Over the next 10 years, states and territories may use the funding available to them in this fund to invest in specific transportation projects that are proven to reduce nitrogen oxide (NOx) emissions. 7 Of the settlement funds, $2.7 billion will be used to establish an Environmental Mitigation Trust. Volkswagen agreed to settlements to resolve the federal government’s allegations that the company cheated emissions standards. Since a retrospective review is not yet possible, and the funds are available primarily for charging infrastructure, they also are not considered here. There is great anticipation regarding the role of forthcoming funds available to states through the Volkswagen Mitigation Trust (see text box below), which can complement existing state polices and help to build out charging infrastructure. Although many states have additional policies specific to charging infrastructure, in the analysis, these were not considered in depth due to the added scope and complexity of the issues. The report focuses on policies targeted at vehicles rather than charging infrastructure. Then, it conducts a quantitative analysis of what policies have worked at the state level in the United States. First, it surveys national-level policies in the United States, Norway, and China.
This report assesses policies that could be effective at increasing the share of light-duty plug-in electric vehicles (PEVs)-small vehicles that can be plugged in to a power source. Yet progressive leaders who want to incentivize sector growth may not be aware of the existing policy options and, more importantly, of those policies’ effectiveness in actual electric vehicle deployment. Government has a strong interest to support the developing electric vehicle market and promote innovation in this sector. Issues such as initial cost, range, model availability, knowledge gaps, and the availability of charging infrastructure continue to inhibit vehicle deployment. Although the electric vehicle market is growing, it comprises a small percentage of cars on the road.
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