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An Action Plan to Integrate Plug-in Electric Vehicles with the U.S. Electrical Grid


Appendix A. Action Plan Terms of Reference

The Group jointly created the terms of reference below.

  1. Take into account the input of a broad and diverse set of stakeholders.
  2. Accelerate PEV adoption in a manner that maximizes greenhouse gas emission reductions, energy security benefits, electrical grid reliability, and economic benefits (including job creation).
  3. C onsider existing efforts at all levels of government and identify reform priorities.
    1. Identify best practices from ongoing efforts, such as those by the states of California, Washington, and Michigan.
    2. Support PEV deployment by transportation agencies.
    3. Identify options for PEVs that help finance the existing transportation infrastructure.
  4. Phase in over time and aim to identify and maximize short-, medium-, and long-term net benefits and emphasize new business model development, timely vehicle purchase, home charging installation, and a skilled workforce. The Action Plan should be structured to encourage innovation and be adaptive, through performance measurement, assessment, and analysis. The Plan will also examine the steps necessary to lay the groundwork for potential grid services to be provided by PEVs (e.g., ancillary services, peak shaving, and demand response).
  5. Address legal, technical, and economic hurdles and risks, identify opportunities for cooperation, and lay out next steps.
    1. Address regulatory issues with an emphasis on barriers to business and technological innovation, managed versus unmanaged charging, and enabling price signals to consumers to encourage off-peak charging.
    2. Prioritize private and public investments for charging infrastructure including public policies that will support business model development that maintains electrical grid integrity while also encouraging technological innovation.
    3. Identify low-cost, high-impact actions by public and private entities that accelerate PEV adoption.

Appendix B. Oil Price Volatility

The figure below conveys the relationship of oil price volatility and events in oil producing countries since 1970.C2ES created the figure by updating data available from DOE's website (

Oil price variations have changed over time and have been influenced by a number of associated events including: Arab Oil Embargo; Iranian Revolution; Iran-Iraq War Begins; Saudis abandon "swing producer" role; iraq invades kuwait; gulf war ends; asian economic crisis; 9/11 attacks; pdvsa workers strike in venezuela; prices rise on opec cutbacks, increased demand; Prices spike on supply disruptions, rapid demand increases, constrained OPEC capacity, low inventories; Rapid demand increases, constrained OPEC capacity, oil price reaches all-time high; Global financial crisis; and Arab Spring, supply disruption in Libya

Appendix C. Example Scoring System

Below is an example of how a scoring system might look including an evaluation matrix and an example community.Estimating how an area satisfies each category depends on the degree to which it meets the listed factors.




Consumer Interest

Very High

High interest in the environment, high-tech, energy security; high income

Gasoline & Electricity Prices

Very High

High differential between gasoline and electricity prices; low electricity prices; high gasoline prices

Automaker & PEV Service Provider Sentiment


Flagship area for automaker and PEV service provider

Existing Regulatory Environment


Compatible with Action Plan utility principles; compatible with Action Plan on addressing regulations

Degree of Local Government & Utility Involvement


Active interest from local utility; active interest from local government

Expected Environmental & Economic Benefits


High smog levels; high concentration of PEV-related businesses

Area Geography


Flat terrain; moderate climate

Land-use Patterns


Many dense mixed-used areas; low per capita vehicle miles traveled

An Example - Electricville, Missouri

Electricville is a medium-sized city in the Midwestern United States. The land in and around Electricville is mostly flat, and the climate is mostly temperate with a few cold winter months. The city is a model for compact development with lots of mixed-use housing, low traffic congestion levels, and high transit use. The income distribution is broad - some affluent residents, but mostly middle class. Both gasoline and electricity prices are low compared to the rest of the country.

Thus far, Electricville has not been the hub of interest in PEVs by automakers, charging infrastructure, or the state, but the local government and utility believe in PEVs since a popular startup plans to manufacture vehicles there. This local involvement has sparked interest by consumers, especially because of the connection to local job creation. Thus far, no one has conducted surveys on PEV interest that could be used to forecast PEVs' market share in the future.

It is clear that Electricville meets some criteria that make for a feasible PEV market using the table above as a guide. Being able to gauge the degree to which the city is feasible for PEVs requires more investigation of consumer interest including surveying. What is clear from this initial assessment, however, is that such an investigation is warranted.

Updated: 10/20/2015
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