Advocates Hoped for More Volkswagen Funds for EVs to be Directed to Midwest
Andy Balaskovitz and Kari Lydersen
Advocates pushing to expand electric vehicle adoption across the Midwest are “a little disappointed” in the selection of U.S. cities to receive funding for EV infrastructure under last year’s Volkswagen settlement.
Chicago was among 11 major U.S. metropolitan areas — and the only one in the Midwest — selected to receive money under a federal consent decree as a result of Volkswagen’s cheating on emissions tests and deceiving consumers about its diesel engines. The plan will be overseen by Electrify America, a Volkswagen subsidiary established to oversee the $1.2 billion that will be spent over the next 10 years on zero-emission vehicle infrastructure and education.
While they applauded Chicago’s selection, clean energy groups are underscoring the importance of the Midwest in a national transition to electric vehicles, and the importance of collaboration between utilities and other investors in this transition.
The $1.2 billion will be spent in $300 million increments over four 30-month cycles, and it’s possible more Midwest cities will receive attention in the coming years.
Major highway corridors in the region — including interstates 80, 75, 94 and 90 — were also selected to receive EV charging stations under the first funding cycle, though details about where those will be located are not yet available.
“We made the case that a number of cities in the Midwest — the Detroit area, Columbus (Ohio), Minneapolis/St. Paul and arguably some others — have been doing significant work around promoting electric vehicles and would have been other good places for Volkswagen to invest,” said Charles Griffith of the Ann Arbor, Michigan-based Ecology Center.
‘More than just Chicago’
The Ecology Center and other nonprofits recently formed Charge Up Midwest to promote and seek funding for EV adoption in the region. One of Charge Up Midwest’s first projects was obtaining funding from the Volkswagen settlement.
“We would have liked to see more than just Chicago selected as one of the communities,” Griffith said.
Other critics have said the settlement agreement gives Volkswagen a leg-up in the electric vehicle market and that the company will be able to control where infrastructure is located to improve its bottom line.
The other cities selected in this first cycle — New York City, Washington D.C., Portland, Oregon, Boston, Seattle, Philadelphia, Denver, Houston, Miami and Raleigh, North Carolina — were chosen largely based on anticipated EV demand.
Michigan and the Detroit region in particular seemed like a good candidate based on the number of EV registrations there and of major U.S. automakers’ interest in breaking into the sector, Griffith said. The state of Michigan also made a separate pitch to Volkswagen for EV funding.
Also, Columbus — which was selected last year for a $50 million Smart City grant from the U.S. Department of Transportation — has been making strides in the clean transportation sector, he said.
“There’s no explanation (in the announcement) about why that wasn’t convincing enough,” Griffith said of the two cities.
According to the plan, Chicago was chosen because of its existing leadership on EVs, including a $14 million city EV program and the electrification of city buses, and because of its relatively dense population, commuting patterns and consumer interest in EVs. The city was chosen despite past troubles with its EV program, including the indictment for fraud of the owners of the provider the city hired, 350green.
“Electrify America notes that it was not able to select every metropolitan area that submitted a strong proposal, but it intends to expand its Community Charging investments into metro areas with supportive government policies and strong utility integration in future investment cycles,” the announcement says.
A new front
Howard Learner, executive director of the Environmental Law & Policy Center in Chicago, described electric vehicles and transportation more generally as the most important new front in the battle against climate change, since so many coal plants including two in Chicago have shut down in recent years.
“Because of the transition of the electricity sector with coal plants shutting down and more wind power, solar power and energy efficiency coming into the market as well as lower-priced natural gas, transportation is now the largest sector in terms of carbon pollution in the U.S.,” Learner said.
“It’s time for those of us who are interested in accelerating carbon pollution reduction to focus more attention and get more serious about the opportunities for progress in the transportation sector,” he added. “The advent of hybrid vehicles and electric cars is potentially as transformative to the transportation sector as wireless technologies have been to telecommunications and as solar and wind plus storage have been to the electricity sector.”