James Madison University

Integrated Science and Technology (ISAT)

ISAT 480

Integration of Electric Vehicles into Society

Author:
Anna Soyka

Submitted to:
Dr. Stephen Frysinger

May 5, 2017

I have neither given nor received help on this report that violates the spirit of the
JMU Honor Code.
Table of Contents
Abstract 1
1. Introduction to Electric Vehicles 2
1.1 Background 2
2. Electricity as a Fuel 4
2.1 Implications of Varying Energy Sources 4
2.2 Growth in Generation and Distribution 8
3. Changes to Current Infrastructure 10
3.1 Charging Stations 11
3.1.1 Technical Aspects 11
3.1.2 Locations 14
3.1.3 Frequency 15
3.1.4 Costs 17
3.2 Effect on the Petroleum Infrastructure 18
4. Types and Costs of Electric Vehicles 19
4.1 Hybrid Electric Vehicles (HEVs) 19
4.2 Plug-in Hybrid Electric Vehicles (PHEVs) 20
4.3 Battery Electric Vehicles (BEVs) 21
5. Time to Market 21
5.1 Sales 22
5.1.1 Marketing 26
6. Political Aspects 27
6.1 Laws and Regulations 28
6.1.1 Federal 28
6.1.2 State 29
6.2 Economic Incentives 29
6.2.1 Tax Credits and Incentives 30
6.2.2 Disincentives for Petroleum 30
6.3 Supportive Programs 30
7. Social Implications 31

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8. Cultural Shifts 31
9. Conclusion 32
10. References 33

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Abstract

Electric vehicles (EVs) are a growing presence on the roads in the United States (U.S.). The
transition from gas-powered vehicles to electrified ones presents a huge opportunity for a change
in the way society views transportation as well as how it operates on many other levels. For these
changes to occur, the integration of EVs into society must not only be tolerated but actively
supported. This report analyzes the changes that are occurring and the adjustments that must be
made on physical, economic, environmental, technological, social, and cultural platforms for EVs
to be integrated into society. It explores the opportunity for growth and reform that this period of
transition offers society and considers the possibility of unintended effects that may occur.

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1. Introduction to Electric Vehicles

Consumers base their purchasing decisions off their needs and the product’s availability.
Petroleum, which was widely abundant for decades, met both of these requirements. It could move
people across long distances, was inexpensive, and was readily available all over the country.
However, with oil reserves depleting, a desire for energy security, and concern for the
environment, petroleum will become costlier and less accessible, unable to serve the American
people as well as it once did. To combat this, electric vehicles have been on the rise. Technology
in the field is improving rapidly so that it can meet the needs of the American consumer. Electric
vehicles introduce lower operating costs, less petroleum consumption, and have the potential to
become zero-emission technology. Soon, with efficient vehicles, an expansive infrastructure, and
supportive political backing, electric vehicles will be the choice of the Americans across the
country, from individual people, to public transit, to federal fleets.

1.1 Background

The invention of the electric vehicle (EV) was achieved through a series of technological
breakthroughs across the globe, from batteries to electric motors. The first EV, developed by
Scottish inventor Robert Anderson in 1832, was a crude electric carriage powered by non-
rechargeable primary cells (PBS, 2009). A few years later in the U.S., blacksmith Thomas
Davenport built the first DC electric motor which he used to propel a small-scale vehicle down a
short track. This paved the way for future developments in field.

In the U.S., it wasn’t until the late 19th century that William Morrison, a chemist in Iowa,
invented the first practical EV. His model could carry up to six passengers and reach a speed of 14
miles per hour (mph). While this was slower than the primary method of travel at the time, horse
and buggy, it sparked interest in the electrification of vehicles. Over the next few years several
different types of EVs were developed by different makers. A few were exhibited at the Chicago
1893 World’s Fair, displaying the accomplishments made in EV technology and showing how
electricity could reshape the nation (DOE, 2014).

At this time, developments were being made towards vehicles based on a range of fuel types.
EVs played a competitive role in the market, accounting for a third of all vehicles on the road.
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Among other options were steam- and gasoline-powered vehicles. Steam vehicles required lengthy
startup times, especially in the cold, and were limited in range by their need for water. Gasoline -
powered vehicles became more popular when improvements to the internal combustion engine
were made in the 19th century, but, they came with several downsides. Their operation required a
hand crank to start up and the constant changing of gears to drive, making them difficult for some
people to manage. They also were very loud on the road and emitted significant amounts of thick
exhaust. These factors inhibited their popularity and encouraged people to look towards EVs for
easy, clean, and quiet transportation (DOE, 2014).

Advancements in EV technology continued to be made. Ferdinand Porsche, founder of the auto

company of the same name, created the world’s first hybrid electric vehicle (HEV) in the late 19 th
century. Thomas Edison made improvements to the alkaline battery. Even Henry Ford explored
the possibilities of EVs. It was Ford, however, who created the first gasoline-powered model that
took down the market for EVs. His 1908 Model T made gasoline-powered cars widely available
and affordable. A few years later, they were only a third of the price of some of the EVs on the
road (DOE, 2014). Charles Kettering also made an extremely valuable contribution to raising the
popularity of gasoline-powered vehicles with his invention of the electric starter around that time.
These vehicles no longer required a hand crank to start up.

Resource availability played a major role in the decline of EVs. As new petroleum reserves
were discovered in the U.S. and a wide network of roads and highways took Americans across the
country, the need for a vehicle that ran on fuel available in rural America became a priority. In the
early 20th century, few people outside of cities had reliable electricity and gasoline stations became
more commonplace, leading to gasoline-powered cars dominating the market (DOE, 2014).

The amount of EVs on the road began to plummet and remained down for decades. It was not
until the availability of gasoline resources began to be scrutinized and concern for the environment
arose that EVs became a point of focus again. In the 1970s, rising oil prices and gasoline shortages
led to an increased interest in finding domestic fuel sources. More attention was also being paid to
climate change and other environmental concerns, sparking an interest in finding clean fuels. To
incentivize finding a solution to both of these issues, Congress introduced bills recommending the
development and use of EVs. EVs became more practical as researchers worked to improve EV

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technologies and popular automobile manufacturers began to electrify some of their models (PBS,
2009).

Still, EVs struggled to win over gasoline-powered cars in the marketplace as the American
middle class thrived and gas prices lowered. It was not until the beginning of the 21 st century that
EVs began to become competitive in the market again. One of the most significant events that
sparked this turn of events was the release of the 1997 Toyota Prius in Japan, the world’s first
mass-produced HEV. In 2000, the HEV was released worldwide and became the world’s best-
selling hybrid of the decade. A second factor to the sudden interest in EVs was Tesla Motors public
unveiling of the Tesla Roadster in 2006, a luxury electric sport car that had a range of over two
hundred miles per charge (DOE, 2014). Since then, Tesla has become the most valuable car
company in the U.S., having surpassed General Motors in April 2017 (Thielman, 2017).

Research and development of EVs continue to rise as people look for sustainable, abundant,
and affordable modes of transportation. Americans are finding them more affordable and gasoline-
powered cars are becoming less desirable. Increasing amounts of incentives are being offered for
EV development and use. Their integration into society has the potential to have a profound effect
on human culture.

2. Electricity as a Fuel

Electricity has the potential to reduce U.S. dependence on foreign oil and increase energy
security. It can also aid in reducing the negative impacts that the transportation sector currently
has on the environment, depending on how it is generated. The primary energy source affects the
availability, affordability, and sustainability of its use.

2.1 Implications of Varying Energy Sources

Electricity is defined as an alternative fuel by the Energy Policy Act of 1992, but it still requires
another source of energy to be generated (DOE, 2017). As of 2016, natural gas, coal, nuclear, and
other nonrenewable energies provide approximately 84% of U.S. electricity generation.
Renewable energies make up the other 15% of generation, primarily from hydropower and wind
(EIA, 2016).
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 Part of the reason EVs receive this support from the government is due to the fact that
electricity in the U.S. is almost solely produced by domestic resources. Currently, the U.S.
transportation sector relies 92% on petroleum, 25% of which is imported from foreign countries
(EIA, 2017). This percentage makes the U.S. vulnerable to price spikes and supply disruptions,
such as the Arab Oil Embargo of 1973, when oil prices nearly quadrupled. The surge in price was
so immediate that the U.S. had no other choice but to pay the high costs. Foreign oil dependence
has implications into the choices the U.S. government makes and directly influences the life of
U.S. citizens. Foreign dependence on oil has been dropping as the U.S. has been producing more
oil domestically. Still, the number of reserves are uncertain and finite and eventually other sources
of energy will need to be found.

The adoption of EVs into society also holds the potential to have positive effects on the
environment. However, EVs are only as environmentally-friendly as their energy source, which
currently is primarily fossil fuels. Many justify the environmental benefits of EVs by citing their
reduced tailpipe emissions compared to conventional vehicles. Due to the multitude of vehicles on
the road, these emissions are more difficult to contain than point-source pollution. For example,
coal power plants, which make up a third of electricity generation, can implement electrostatic
precipitators and fabric filters, technology that is capable of removing 99% of the fly ash released
during energy conversion. High-efficiency low-emission (HELE) plants refer to supercritical coal-
fired plants that run at high thermal efficiencies which reduce emissions and fuel costs per unit of
energy outputted. Wet scrubbers can be used to remove SO2 and acid gases from the coal. Methods
of “clean coal” continue to be developed (World Nuclear Association, 2017). However, the Toyota
Prius and the all-electric Nissan LEAF produce roughly the same amount of greenhouse gas
pollution as conventional vehicles because coal-fired power plants are the largest source of
greenhouse gas pollution and the second largest source of electricity in the U.S. (Biel lo, 2016).
The technology, policies, and regulations to reduce point-source coal pollution to a level more
beneficial than current conventional vehicles are simply not in existence yet.

A shift towards renewable energies could eliminate any doubt towards the sustainability of
EVs. Gradually, this shift has been occurring in the U.S. Investments in renewable energies have
increased by almost six times since 2004, reaching $50 billion for 2015’s first quarter and the
amount of photovoltaic systems in the country has increased every year since 2000 (Hulac, 2015).

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The average cost homeowners have been paying for solar panels has been between $2.87 and $3.85
per watt for installation before taking into account reductions of costs from tax credits, as depicted
in Figure 1, below. These values have been steadily decreasing over the years and can be expected
to fall even further as more advancements are made in the field.

Figure 1. Graph of U.S. national average photovoltaic system costs by market segment. A decrease in cost over time is apparent
for each market (Source: SEIA, 2016)

Also on the rise, wind power capacity has increased immensely over recent years. The U.S.
currently leads the world in wind energy production, supplying almost 5% of its energy from wind
power (AWEA, 2016). Advancements in turbine technology from rotors, to blades, to controls
have allowed for wind power to become competitive in the renewable energy market. Due to these
technological developments as well as increased acceptance by the public, the number of wind
power sites in the U.S. have increased relatively quickly and dramatically.

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 Figure 2. Active wind-related manufacturing facilities at the end of 2014 (Source: AWEA, 2017).

Currently, hydropower is the most ubiquitous form of renewable energy, representing

approximately 26% of the renewable energy consumption in the U.S. About two-thirds of the
economically feasible hydropower potential remain to be developed, however these resources are
located in Latin America, Central Africa, India, and China. In the U.S., most of the areas for new
economically-feasible hydroelectric dam construction have already been developed on (USGS,
2016). As shown in Figure 3, below, construction of surface reservoirs has slowed significantly.
Still, new reports from the Department of Energy have identified that massive amounts of
hydropower can be built by using existing infrastructure and retrofitting non-powered dams
(Spector, 2015).

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 Figure 3. Trend in hydroelectric storage capacity over time. Significant growth occurred
between 1940 and 1980 and has since plateaued. (Source: USGS, 2016).

While about 15% of electricity in the country is generated by renewables, the other 85% is
still being produced by nuclear energy, the renewable nature of which is a controversial topic, and
carbon emitting fossil fuels (EIA, 2017). For electricity to become a truly sustainable, zero-
emissions fuel, more developments of renewable energy production need to be made in the U.S.

2.2 Growth in Generation and Distribution

As advancements in EV technology make EVs cheaper for the public, EVs will gain popularity,
as is already beginning to happen. Plummeting costs of batteries, in particular, may kickstart a
mass market for EVs. Large-scale production and use of EVs will have considerable effects on the
energy industry, particularly for petroleum and renewables.

The current price of petroleum at the pump in the U.S. is driven primarily by the cost of crude
oil, a price determined by the exporting nations. As is apparent in Figure 4, below, many other
nations place taxes on their petroleum as a disincentive for its use by citizens. As a result, these
countries have created a culture of traveling by way of compact vehicles or alternative modes of
transportation. However, in the U.S., the average retail price of unleaded gasoline at the pump is
19% taxes, 19% refining costs and profits, and 14% distribution and marketing costs (EIA, 2016).

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The cost of gasoline is relatively inexpensive and provides no disincentive to cut down on fuel
consumption.

Figure 4. Price of petroleum per liter separated into taxes and remaining costs for several countries. (Source: The
Conversation, 2014).

A shift towards an EV culture inevitably means a shift away from a petroleum-based society.
This change makes economic sense as alternative fuel vehicles, such as EVs, can obtain
significantly lower, and more stable fuel prices than conventional vehicles. Figure 5, below,
displays the average retail fuel prices in the U.S. by type of fuel, each of which is levelized to
gasoline-gallon equivalents (GGE). The cost of electricity is considerably less than the cost of
gasoline and other conventional fuels. In addition, much less fluctuation occurs with the price of
electricity, in part due to the fact that it is domestically produced. These factors allow electricity
as a fuel to be extremely economically-feasible. Even gasoline providers are recognizing this truth
and partnering with electric charging installers to ease the transition (Pressman, 2016).

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 Figure 5. Average retail fuel prices in the U.S. levelized to U.S. dollars per gasoline-gallon equivalents (GGE). The cost of
electricity has remained far below the cost of other fuels. (Source: Clean Cities Alternative Fuel Price Reports, 2017)

The increase in electricity demand for EVs will bring about a growth in the coal and natural
gas sectors that make up most of electricity production currently. While reducing the amount of
petroleum use in society will have its own environmental benefits, combatting the increased
negative environmental impacts that can be expected with more coal and natural gas activity is an
important challenge to be recognized. The development of renewable energies holds great potential
for tackling this issue. As political entities lobby for cleaner and more sustainable energy practices,
the promise and feasibility of renewable energies will become even more apparent, inviting more
policies and regulations to promote and incentivize research and development in the field.

3. Changes to Current Infrastructure

For the public to accept EVs into society there must be an infrastructure to support them. This
infrastructure must be as reliable, convenient, and practical as the one put in place for petroleum
currently is, or most people will see little incentive to make the switch. Technological
advancements, economic-feasibility, and political support must be put into place for EVs to
become a viable lifestyle.

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3.1 Charging Stations

3.1.1 Technical Aspects

Charging equipment for plug-in electric vehicles (PEVs) is classified by how quickly the
battery can be charged. Current technology permits for a variety of charging times ranging from
less than 20 minutes to 20 hours or more. Certain factors affect the speed of charge such as how
depleted the battery is, its energy capacity, the type of battery, the type of charging station, also
known as electric vehicle supply equipment (EVSE), and sometimes even the temperature. (DOE,
2017).

The slowest style of charging is AC Level 1 Charging, which provides two to five miles of
driving range for every one hour of charging. Level 1 charging is typically used when there is only
a 120 V, alternating current (AC) outlet available, the standard household outlet. However, it can
still meet the charging needs of a driver. For instance, it would take eight hours of charging at a
Level 1 station to refuel approximately 40 miles of electric range for a mid-size EV. This is a
practical situation for a driver who works close to home and can afford to charge their EV at home
each night. Most EVs include an AC Level 1 EVSE cord set, pictured below in Figure 6, ensuring
that no additional charging equipment needs to be purchased. On one end of the cord is a standard
NEMA connector, a common three-pronged household plug, and the other end is an SAE J1772
standard connector that plugs into the EVs charge port.

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 Figure 6. An AC Level 1 EVSE cord set. On one
side is a common household, three-pronged plug.
On the other is a J1772 port that plugs into PEVs
(Source: Amazon.com).

The next quickest charging mode is AC Level 2 Charging, which allows for ten to twenty miles
of driving range for every hour of charging. Level 2 charging is available through a 240 V
(typically for residential purposes) or a 208 V (typically for commercial applications) electrical
service, requiring a separate installation of charging equipment. This charging speed could
completely replenish the 2017 model of the best-selling EV, the Nissan LEAF, in just over five
hours (Nissan, 2017). Level 2 charging stations are typically found in residential settings, public
parking areas, places of employment, and commercial settings (EV Town, 2015).

The third, and most time-efficient method of charging is DC Fast Charging, sometimes called
DC Level 2 charging. This charging style enables rapid charging along main traffic corridors at
installed locations. In twenty minutes of charging a vehicle can gain fifty to seventy miles of
driving range. There are currently three separate types of DC fast charging systems in place: J1772
combo, CHAdeMO, and Tesla combo. The first is presently used exclusively by Chevrolet and
BMW EV models. It is compatible with Level 1 and Level 2 charging systems as well, offering a
level of convenience to the driver that the other two do not. The defining feature of this type of
charger is that the J1772 combo includes two small prongs below the three-pronged area, as shown
in Figure 7 below. The CHAdeMO is the most common of the three DC fast charging systems and
is used by Nissan, Mitsubishi, and Toyota. Tesla vehicles have a unique charging and connector
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that can be used at all their charging stations, including their supercharger option (DOE).
Supercharger stations are capable of distributing 145 kW of power between two EVs with a
maximum of 120 kW per vehicle, up to sixteen times as fast as most public charging stations
(Tesla, 2017).

Figure 7. A J1772 combo connector used for DC Level

2 Fast Charging (Source: Marcucci, 2013).

EV charging technology is relatively new in the U.S. and new developments are rapidly
appearing. Another standard charger, the SAE J3068, is under development, aiming to achieve
higher rates of AC charging using a power system commonly found in commercial and industrial
locations in the U.S (DOE). Target power levels for this charger are set between 6 and 130 kW. In
addition, cordless charging stations based off of inductive charging equipment have recently been
introduced into commercial settings. These wireless stations transfer electricity to an EV by way
of an electromagnetic field, rather than a conventional cord.

An alternative methods of replenishing EVs’ driving ranges has been considered. Battery
replacement stations have been a topic of discussion for some time now, but have never gained
solid ground in the EV infrastructure market. Elon Musk, CEO of Tesla, briefly advocated for
Tesla battery swapping stations in 2015, but lack of support did not allow for continuation
(Sorokanich, 2015). The justification for these stations was that, with the right technology, a dead
battery could be swapped out and replaced with a fully charged one faster than a charging station
could replenish an EV’s range. However, the current challenges posed by battery-swapping
stations overshadow its potential. Batteries are a core, imbedded element of vehicles. Creating a
system of extracting and replacing this core element of a vehicle risks a number of things going
wrong with the number of moving parts that would be involved. In addition, car batteries weigh
hundreds of pound and great expenses would have to be made to engineer and install automated

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systems to accomplish such a task. The biggest source of resistance to this type of refueling is the
rapid turnover of electric vehicle technology that is currently occurring in the U.S. Without a
standardized EV battery in place, battery replacement is not feasible.

3.1.2 Locations

The locations of charging stations vary based on charging needs. EVs may be recharged in the
home overnight, during the day at the work place, in public parking areas, or alongside roadways
in commercial settings. The average commuter in the U.S. drives approximately fifteen miles to
work each way (BTS, 2003). The current Nissan LEAF has a range of 107 miles on a full charge
and takes approximately eight hours to charge on Level 1 charging. One full charge could last an
EV about half a work week with room for other small trips throughout the day. By plugging the
EV in to charge each or every other night, the driver would rarely have to worry about not having
enough fuel to travel.

Many EV drivers charge their vehicles at home for the convenience, but charging stations at
work locations can double the owner’s all-electric commuting range. Currently, workplace
charging is a strategic move towards promoting EV adoption in society and for retaining a cutting-
edge work force. Employees interested in purchasing an EV are able to become familiar with and
learn the benefits of EVs from their colleagues and may be more likely to consider adopting that
lifestyle if they know their workplace supports it. The Workplace Charging Challenge aims
increase the number of U.S. employers offering workplace charging by ten times by 2018 by
supporting the deployment of charging infrastructure. As of January 2017, over 400 employers
joined the program and have installed over 7,500 charging stations accessible to nearly one million
employees (DOE, 2017).

Workplace charging is a sustainable business practice and an attractive employee motivator.

Partners of the workplace charging program have saved a collective 2.4 million gallons of gasoline
and 26 million pounds of greenhouse gas emissions per year. In addition, much of the employers’
staff have expressed that they approve of the charging stations at their workplace and many have
received third party positive recognition for their progressive efforts (DOE, 2017). Considerations
for managing workplace charging sites are important to be taken in order to keep employees
satisfied. A study analyzed six different workplace charging stations, some of which were free and
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others of which charged a fee. They determined that imposing a fee to charge at work is likely to
reduce utilization of the station. Adding to this, if fees are too high and commuting distances are
low, the stations are likely to be rarely used. They also found that imposing rules on how long a
vehicle may be left in a charging spot is a disincentive for use as drivers do not want to risk being
fined in the case that they cannot leave work to move their vehicle. Different policies must be put
in place for different work settings depending on factors such as staff size and average daily
commute (Idaho National Laboratory, 2014). Once the best fitting regulations are determined and
put into place, workplace charging stations can be extremely effective in engaging the community
in EV culture.

Charging stations are especially needed in public parking and commercial locations. At these
locations, a driver can stope to charge their vehicle while going about their daily business grabbing
lunch, attending a doctor appointment, or going shopping. There are a number of commercial EV
charging station installers offering fleet operations, offices, retail, hospitality, multi -unit
residential, industrial, and other services.

3.1.3 Frequency

Charging stations need to be available to EV drivers within sufficient distances to relieve any
“range anxiety,” or fear of being unable to charge an EV’s battery when needed, the driver might
experience. The frequency of EV charging locations depends on the station’s charging speed and
the type of battery that needs to be replenished. For an average daily commute to work and back,
charging an EV at home is feasible, especially if the place of work has installed charging stations.
Traveling farther distances, across the country for example, involves knowing that there are
reliable, efficient charging stations all over the country along multiple routes. Currently, Tesla’s
supercharger network offers a significant array of 848 stations that enable their drivers to travel to
many, if not all, parts of the U.S. mainland, as shown in Figure 8, below, but these are top of the
line vehicles that have a much greater driving range than many other EV makes (Tesla, 2017). For
instance, DC Level 2 charging stations that can accommodate for the Chevrolet Volt or Nissan
LEAF, vehicles much more in the price range of the middle class American, must be spaced closer
together to accommodate the shorter driving range.

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 Figure 8. Tesla’s supercharger network across the U.S. mainland (Source: Tesla, 2017).

Efforts are being made to support EV usage by providing a wide network of available charging
stations to the public. In 2016, the U.S. Department of Energy held its first Sustainable
Transportation Summit, where the Obama Administration announced a set of federal and private
sector actions to accelerate the EV adoption in the U.S. At the summit, the Administration
announced the launching of the FAST Act process in order to identify corridors for zero-emission
and alternative fuels, including for EV charging across the nation. These corridors are highlighted
in the map in Figure 9, below. Signs indicating nearby charging station, similar to gas station signs
located on highways, will be installed along 25,000 miles of roadway and in 35 states (Fung, 2016).
The Administration also set goals to develop a 2020 vision of a national network of EV fast
charging stations to aid in determining where along the corridors it is most logical to place the
infrastructure (The White House, 2016). Currently in place, there are 15,878 public electric
charging stations across the U.S., adding up to 42,364 charging outlets for vehicles (DOE, 2017).
With the combined efforts on national, commercial, and private levels, the EV charging station
network will eventually be sufficient for EV vehicles as the gasoline station network is for
conventional vehicles.

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 Figure 9. Corridors identified by the FAST Act for alternative fuel vehicles. Sufficient amounts of EV
charging stations are to be installed along these routes (Source: Fung, 2016).

3.1.4 Costs

The cost per charge at EV charging stations varies depending on state electricity prices, type
of charging, and charging company. At home, the cost to charge at a Level 1 rate is simply added
to the electric bill each month. In commercial settings, this cost may be more or less expensive,
depending on what charging station is visited.

Various networks offer various services to EV drivers. Aerovironment, also called AV, offers
a range of Level 2 and DC Fast Charge equipment, but operates its own network of chargers
primarily in Oregon and Washington State. The company offers unlimited monthly access for
$19.99 per month with a one-time activation fee of $15. Alternatively, the company offers pay-as-
you-go opportunities of $7.50 session for DC Fast Charging and $4.00/session for Level 2
charging. Blink Network covers 25 states and requires membership for an “InCard,” which is
linked to the member’s credit card and used for charging purposes. Blink is usage-based and offers
kilowatt-hour (kWh) pricing rather than cost per session. Considerable though should be taken by
an EV driver into what type of charging network they want to buy into, if they’d rather pay as they
go without membership fees, or if they’d rather only charge at home and any other free charging
stations that are available to them.

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 For residential Level 1 charging, no fees are incurred to charge an EV besides the cost of
electricity per kWh. However, to upgrade to faster charging systems, a capable and durable EVSE
installation will cost around $1,000, over half of which is the cost of the actual charging mechanism
(Agenbroad, 2014). This number can vary significantly depending on the EVSE features chosen,
but considering savings in fuel costs, the payback period of this investment is relatively short.

Public chargers involve higher expenses than at-home chargers, and vary over a larger range
depending on the site specifics, number of stations, and installation. Single charger hardware costs
approximately $2,300 on average, but can costs as much as $6,000 depending on features such as
LCD screens, data tracking, ad dual-port power routing capabilities. For public charging stations,
installation costs are where most of the fees are incurred. Parking garages are the most inexpensive
locations for charging stations, where they can be wall mounted rather than bored into the ground.
Installing multiple ports per station or multiple stations at once reduces the overall cost per charger.
The wires that can be joined as well as other efficiencies in installation allow for economies of
scale (Agenbroad, 2014).

Public DC Fast charging is currently the most expensive charging method, ranging from
$50,000 to $100,000 per station. The reason for the high cost can be attributed to the expensive
hardware and equipment as well as the need to install a 480 V transformer. With advancing
technology, DC Fast charging is expected to become more cost-effective and outpace Level 2
charging as the dominant charging method.

3.2 Effect on the Petroleum Infrastructure

EVs are relatively new technology and have not had much of an impact on the conventional
vehicles on the road. However, as the nation looks to wean off of foreign oil, and EV technology
improves to make them more cost-efficient, vehicle manufacturers will look towards an EV future.
Nissan has sold over 100,000 of its Nissan LEAF model to date, a number that is increasing, along
with EV models from makers such as Chevrolet, BMW, Ford, and Tesla. A significant portion of
automakers signed on to Obama’s FAST Act, showing their dedication to the future of EVs (The
White House, 2016).

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 As electric vehicles begin to displace conventional petrol cars on the road, changes in
infrastructure will occur for the petroleum industry. In areas where one could previously find three
gas stations on one street corner, one may find three EV charging stations and only one gas station.
The decommissioning of gas stations or conversion of these stations into charging stations will
pose another topic of discussion for energy stakeholders. The timeline of this shift in infrastructure
is yet to be determined by the advancements to be made in EV technology and society’s readiness
to shift off to an EV culture.

4. Types and Costs of Electric Vehicles

Advancements in EV technology have allowed for EVs to become competitive in the

automobile market. These prices can be reduced even further by qualifying for federal and state
tax credits and/or exemptions. In addition, converting conventional vehicles to hybrids or plug-in
electric vehicles can prove economically feasible in some cases. These conversions require U.S.
Environmental Protection Agency (EPA) certification to complete.

4.1 Hybrid Electric Vehicles (HEVs)

Figure 10. Diagram of a hybrid electric vehicle. (Source: EERE)

HEVs are characterized by their systems’ combined effort of a conventional internal

combustion engines (ICE) and an electric propulsion system. When the vehicle accelerates, passes,
or climbs hills, the electric motor moves the car, drawing on the battery for power. This allows for
a smaller, more efficient engine to be used in the vehicle. In some hybrids, the electric motor alone
will be used to propel the vehicle at slow speed, when ICEs would be most inefficient (EERE).
19
Hybrid vehicles also utilize a technology called regenerative braking, a system that recaptures a
significant amount of the car’s kinetic energy and convert it into electricity, in turn recharging the
electric battery. This grouping, which is shown in Figure 10, above, allows for the benefits of both
ICEs and electric motors, increasing fuel economy and reducing tailpipe emissions.

The first massed-produced HEV in the U.S. is the best-selling Toyota Prius. This 2017 model
of this vehicle costs $26,675 – $30,935 MSRP, before consideration of any tax credits the
purchaser might qualify for. This model’s EPA fuel economy is 41 miles per gallon (mpg)
combined city and highway, providing fuel savings of $2,500 over five years when compared to
the average 2017 vehicle (EERE, 2017).

4.2 Plug-in Hybrid Electric Vehicles (PHEVs)

PHEVs operate similarly to hybrids. Their defining feature is that the battery can be charged
by an external source, the ICE, or by regenerative braking. This charged battery is then used to
extend the driving range of the vehicle. This differs from HEVs, because where HEVs depend on
petroleum at almost all times, PHEVs can run solely on electricity when fully charged. This dual
fuel ability makes PHEVs a good choice for long distance commutes when the availability of
charging stations is unreliable.

One of the most popular PHEVs is the Chevrolet Volt, the 2017 model of which is priced at
$33,220 MSRP, or $25,720 MSRP after federal tax credits (IRS, 2009). The total range of this
model is 420 miles, 53 of which can be provided by electricity alone. When running on
conventional fuel, the Volt obtains about 42 mpg combined city and highway. Running on
electricity alone, the Volt can reach up to 106 mpge combined city and highway. Annual fuel costs
for this model based on 15,000 miles driven add up to $650, leading to a savings of $3,750 over
five years when compared to the average 2017 vehicle (EERE, 2017).

20
4.3 Battery Electric Vehicles (BEVs)

Figure 11. Diagram of a battery electric, or all-electric, vehicle (Source: IEEE, 2007).

BEVs, also known as all-electric vehicles (EVs), are unique in that they are powered solely by
electricity from external sources. A diagram of an EV is shown above in Figure 11. The vehicle’s
battery is charged up with electricity from an external power source which then powers the electric
motor, and in turn, the vehicle.

One of the best-selling EVs in the U.S. is the Nissan LEAF. The 2017 model of this EV is
priced at $30,680 MSRP before tax credits, and has a 107-mile driving range. The LEAF drives
112 mpge combined city and highway, leading to a fuel savings of $4,000 over a five-year period
compared to the average 2017 vehicle (EERE, 2017).

5. Time to Market

The amount and number of models of EVs being manufactured in the U.S. are growing at an
accelerating rate with respect to improvements in EV technology. As more EVs are put on the
market, new marketing strategies will need to be thought out and developed to build upon the most
intriguing aspects of EVs.

21
5.1 Sales

EV sales are higher than they have ever been in the U.S. Between November 2015 and
November 2016 more than 130,000 PHEVs and/or EVs were sold, bringing the total number of
EVs sold in the U.S. to 542,000 (Bhuiyan, 2016). That number is seven times greater than the
number of EVs that were sold in the U.S. in 2012. A graph of PEV sales by model is displayed
below in Figure 12. The rapid growth in PEV sales between the years of 2011 and 2014 can be
attributed the improvements in EV technology and the cost-reduction that followed these
advancements. In addition, the wider variety of models to choose from provides consumers more
options and helped spur this growth. The Nissan LEAF and Chevrolet Volt were the first successful
EVs on the market, still selling at strong rates years later. With the addition of Tesla Model S on
the market, these three models accounted for over half of all PEV sales in 2015. Further
contributing to the growth of PEV sales was, and still is, the increase in charging infrastructure
available in the country. Overall economic recovery from the recession of 2007, which included a
crisis in the automobile industry, explains this growth as well. The small dip in sales that occurred
in 2015 was owing to a decrease in gasoline prices (AFDC, 2016). The growth of PEVs on the
road is apparent and can be expected to continue as the factors that drove the rapid increase in
sales in 2012 continue to induce growth.

Figure 12. This chart shows the number of PHEVs, broken down by model, sold in the U.S. between 2011 and 2015. (Source:
AFDC, 2016).

22
 EV sales date back farther than the graph above allows. Figure 13 below, displays the number
of HEV sales in the U.S. by model dating back to the beginning of the 21 st century. The Toyota
Prius, the first mass-produced HEV, arrived in the U.S. in the year 2000. Since then it has been
the top-selling HEV model, despite the fact that there are over fifty HEV models available to
consumers. A significant increase in HEV sales occurred in 2005 in response to federal and state
tax incentives and rebates offered to purchasers. As HEVs rely on both electric and conventional
fuels, the Great Recession of 2007 caused a decline in sales, consistent with the trend of total
vehicle sales. Economic recovery, increased gasoline standards, as well as new fuel economy
standards, triggered the spike in sales in 2012 (AFDC, 2016).

Figure 13. This chart shows the number of hybrid electric vehicles (HEVs), broken down by model, sold in the United
States between 1999 and 2015. (Source: AFDC, 2016).

The number of EVs on the road is not limited to regular passenger cars. Trends in electrified
public transportation also display in increase, as illustrated in Figure 14, below, which offers the
number of U.S. transit buses by fuel type. The majority of these buses run on diesel and on natural
gas blends. While the number of natural gas-powered buses is still on the rise, diesel-fueled buses
are being displaced by electric and hybrid models, which represent the fastest-growing fuel type,
having increased eightfold from 2007 to 2015. Much of the rise of both natural gas and electric
buses can be attributed to the advantageous economics and local clean air benefits of these fuel
types in public transit applications.

23
Figure 14. This chart depicts the number of transit buses in use in the United States, categorized by fuel type, from 2007 to 2015.
(Source: AFDC, 2016).

The slowest groups of vehicles to adjust towards an EV-centric culture are fleets operated by
state agencies of alternative fuel providers. Regulations put in place beginning in 1992 require
certain vehicle fleets to acquire alternative fuel vehicles (AFVs) as a percentage of their light duty
vehicle fleet. However, as these fleets’ main motivation for AFV acquisition is legal matters, they
tend to lean towards flex fuel vehicles which run on high-level ethanol blends. This can be
attributed to the fact that gasoline can be used as a substitute for ethanol when the latter is
unavailable and many automobile manufacturers offer flex fuel blends models of vehicles most
often acquired by fleets. The marginal cost of flex fuel vehicles is little more than the cost of a
conventional gasoline-powered vehicle, allowing fleets to meet AFV standards without much cost
to them (AFDC, 2016). To help spur growth in EV acquisitions in fleets, many municipalities are
imposing regulations and setting goals. Arlington County, Virginia, for example, is committed to
ensuring that five percent of vehicle-miles by County fleet sedans are driven by EVs, while
Sonoma County, California intends to purchase new EVs for their county fleet and install fleet-
only EV charging ports by 2018 (Lambert, 2016). As shown in Figure 15, below, EV growth has
been slow to minimal over the past twenty years, but new regulations may lead to positive changes.

24
Figure 15. This chart displays the number of AFV acquisitions these fleets made from 1992 through 2015. (Source: AFDC,
2016).

As much growth as the U.S. has seen in terms of EV presence in society, there is little
uniformity across the country for these trends. Most of the action towards shifting towards EVs is
being done either by independent companies, from commercial charging installation companies to
EV manufacturers, or at the state level in terms of economic and social incentives, such as tax
credits, High Occupancy Vehicle (HOV) lane access, utility rebates, and special rate plans for EV
charging (AFDC, 2016). California is known for having the largest population of EVs in the nation,
while Utah holds the title for the fastest growing EV market. Tesla’s Model S surpassed all other
auto makers by selling the most vehicles between the January and November of 2016. At the same
time, other parts of the country are seeing little to no growth in, and even opposition to, the EV
sector. The state of Georgia, which used to be second in EV sales, replaced their potential $5,000
tax credit with a $200 annual fee for owning and operating EVs, a program that led to an eighty
percent drop in EV sales (Coplon-Newfield, 2017). With the new Trump Administration, the fact
that the federal government has largely remained uninvolved with EVs may be a good thing,
considering the president appointed Exxon CEO, Rex Tillerson, to secretary of state and nominated
known climate change-skeptic, Scott Pruitt, to the EPA administration. Currently, the only federal
action providing benefits for EVs are a federal tax credit and fuel efficiency standards. In the event
that these incentives and regulations are removed, the independency of the EV market is likely to
allow EV sales to continue to rise.
25
5.1.1 Marketing

As EVs become more popular in society, one can expect to see them as commonly as
conventional vehicles. This not only pertains to vehicles visible on the road but to advertisements
and entertainment. New marketing styles will be developed to sell these cutting-edge, tailpipe-
emissionless, electrified cars and the electricity used to power them.

Just as marketing has always been done, successful points of advertisement will range
depending on the intended audience. For vehicle sales, many consumers will make their choices
based off practical specifications such as the vehicle’s driving range, the fuel economy associated
with that range, and the speed at which the vehicle can reach a full charge. A Nissan LEAF or
Chevrolet Volt will be able to provide for most people on their daily commute to and from work
as well as any side trips made during the day while being charged solely on Level 1 charging at
home. Other consumers may be more concerned with long-distance trips and desire an EV with a
substantial range, DC Level 2 charging, and a wide network of available charging stations across
the state or country. Advertisements will likely focus on these point in order to reel in customers
for the different vehicle types.

Perception of the issue of air pollution and energy security may also hold a strong role in
marketing techniques. Many environmentally-conscious consumers respond to businesses that
advertise “going green.” For people residing in areas with local pollution problems, such as large
cities, this issue may be more prominent in their decision-making process. In wake of this,
commercial EV charging stations may invest in on-site solar powered electricity or other forms of
renewables in effort to attract these types of people. In addition, a large portion of U.S. citizens,
especially more conservative citizens, are proud to live in a self-sustained America that does not
rely on outside sources of energy. As EVs run on electricity produced primarily domestically,
many EV manufacturers will likely capitalize on this fact.

The attractiveness of EVs will also play a major role in marketing to the consumer. As
important as the vehicle specifications are for the practicality of a vehicle, many consumers
consider the excitement factor and progressiveness of their vehicle to be a major deciding factor
in choosing a vehicle. ChargePoint, the largest and most open network of EV charging stations in
the world, found little correlation between rising gas prices and EV sales. Other than economic

26
feasibility and environmental benefits, many consumers are simply looking for cutting-edge
technology, a factor that is likely helping Tesla’s Model S sales skyrocket, as seen in Figure 16,
below (Bhuiyan, 2016).

Figure 16. Electric Vehicle Sales by model for the months of January through November of 2016. (Source: Bhuiyan, 2016).

6. Political Aspects

Political support is a valuable aspect needed to be taken into consideration when analyzing
how EVs are and will be further integrated into society. Several measures have been taken to
promote research and development of EV technologies as well as their applications. Actions
towards reducing emissions and dependency on petroleum have also resulted in positive changes
to the EV culture. Encouraging the use of EVs on federal, state, and local levels wil l make their
integration into society much smoother and more efficient.

27
6.1 Laws and Regulations

6.1.1 Federal

In terms of federal action, relatively little has been done to promote EVs. Most are regulations
concerning AFVs that federal entities follow by adopting ethanol blends and natural gas
technologies. The main federal actions that support EVs include allowing states to exempt AFVs
and EVs from HOV requirements and the U.S. Department of Transportation’s designation of
alternative fueling corridors in strategic locations along major highways to improve mobility.
These corridors, which consist of 55 routes spanning 35 states, are to be updated every five years
and have deployed the fueling stations by the end of 2020 (AFDC, 2017).

Some federal laws aimed to support EVs are not as effective as they are intended to be. For
instance, the U.S. General Services Administration (GSA) or any federal agency may install EVSE
for federal employees and others authorized to park on the premises. However, the users must not
only reimburse the agencies for the electricity costs, but also the EVSE procurement and
installation (DOE, 2011). This is likely to deter federal employees from purchasing EVs or at least
driving them to work because the costs to acquire and install the EVSE falls directly on them, even
though its use will be continued for new employees that were not charged this additional cost. In
the interest of fairness, new employees may be asked to pay a fee for onsite charging, but as stated
in Section 3.1.2, when fees are imposed at these charging sites, utilization rates fall.

While active federal laws and regulations to promote AFVs and EVs are lacking, several steps
towards making these laws and regulations happen are in place. Obama’s EV Everywhere Grand
Challenge announced the goal of making EVs as affordable and convenient for the American
family as gas-powered vehicles. To make this goal a reality, the Department of Energy’s Office of
Energy Efficiency and Renewable Energy (EERE) held the first-ever Sustainable Transportation
Summit in Washington, D.C. in July of 2016 (The White House, 2016). This event brought
together transportation and mobility leaders, including vehicle manufacturers, electric utility
companies, EV charging companies, and state and organization representatives, to discuss
technology, policy, and market innovations that have the potential to shape the future of
transportation systems. Decarbonizing the transportation sector, adopting energy efficient and low -

28
carbon technologies, and making intelligent transportation systems a reality were some of the
major talking points (The White House, 2017). Executive actions to scale up charging
infrastructure were announced. These actions included massive loan guarantees and the launch
process for the FAST Act. This new gathering of powerful leaders in the transportation industry
was a vital step towards creating a practical future for EVs.

6.1.2 State

Fortunately, greater action is being taken on the state level than on the federal level. The state
of Virginia (VA) allows AFVs, including EVs, in HOV lanes and excludes EVs and some HEVs
from emissions testing. The Virginia Board of Education is allowed to use Literary Funds to
provide funds to school boards that convert school buses to AFVs or construct AFV fueling
stations (AFDC, 2017). Fairfax County, Virginia, home to the largest municipal fleet of vehicles
in Virginia, has acquired one PHEV school bus so far (Fairfax County, 2015). VA state
government allows local governments to reduce personal property taxes paid on AFVs and taxes
alternative fuels at the same rate as gasoline. The latter of which does not save an EV owner money,
but, as gasoline taxes are relatively low, it certainly will not cost them any more than conventional
fuel would (AFDC, 2017). Relatedly, retail EV charging regulations have been put into place to
ensure that states cannot set rates, charges, or fees for retail PEV charging services provided by
non-utilities. This allows certain organizations to provide free charging services to PEV owners.

State incentives vary across the country. Some EVs are allowed carpool lane access in
California, New Jersey offers exemption from sales tax, and other provide free municipal parking
(Tesla, 2017). The combined effort of states across the country are aiding in the provision of a
supportive culture for EVs.

6.2 Economic Incentives

Economic incentives for EVs and the accompanying infrastructure are extremely helpful in
creating a rapid shift towards EVs. That is apparent when looking at the trends of EV developments
and sales that rapidly jump in 2005, when many of federal and state incentives were put into place.

29
6.2.1 Tax Credits and Incentives

These incentives are offered on individual, governmental, commercial, and institution levels.
A federal tax credit of $2,500-$7,500 is available to purchasers of new PEVs. Qualification for
this credit range is based off battery capacity and vehicle weight rating. The credit is phased out
after the manufacturer sells a certain number of PEVs (AFDC, 2017). Governments are allowed
to issue bonds subsidized by the U.S. Department of Treasury to fund capital expenses on certain
energy conservation projects. In the context of EVs, these bonds have funded research and
development of battery manufacturing technologies. Several other bonds, grants, and loans
programs are offered from the government for similar projects by institutions, manufacturi ng
facilities, and other organizations (AFDC, 2017). This funding is what allows for advancements
in EV technology which in turn is making them cost-effective and more widely-accepted by
society.

6.2.2 Disincentives for Petroleum

Even as EV technology becomes cheaper, the shift towards EVs is still a long and tedious
process. The petroleum infrastructure that is already present is convenient for many Americans
who already own conventional vehicles. To speed the pace, direct incentives to decrease gasoline
consumption may eventually need to be put in place. For example, by following the model of many
other countries, shown previously in Figure 4, increasing gas prices at the pump would result in
less gasoline consumption and provide more motivation to switch to electricity as a fuel. This type
of incentive is not currently feasible as the U.S. is still a petroleum-based society, but as EVs
continue to gain momentum, eventually conventional vehicles will become less important in the
lives of Americans and higher prices at the pump will not be detrimental.

6.3 Supportive Programs

Many programs have been created to support the use of EVs and ease the transition from a
petroleum-based society to an electricity-based one. Clean Cities supports local initiatives to
reduce petroleum use in the transportation sector, such as installing free charging stations. The
program has a network of nearly 100 volunteer coalitions. The Air Pollution Control Program,
whose main role is to assist state, local, and tribal agencies in using adequate programs for
30
prevention and control of air pollution, plans to emphasize alternative fuels and provide project
funding of up to 60% total costs. The State Energy Program offers grants to states to assist in
designing, developing, and implementing, renewable energy and energy efficient programs
(AFDC, 2017). These states can receive funding for special projects. The state of Nevada utilized
these funds to create and electric highway connecting two major urban centers within the state
(Las Vegas and Reno) (EERE, 2015). Programs across the country are organizing for EV support.

7. Social Implications

With such a progressive shift in technology, there is likely to be shifts within society that need
to be prepared for. If EV infrastructure becomes commonplace and petroleum infrastructure is
phased out, different economic classes may struggle more than others with the change. If the shift
is too rapid, Americans of lower economic status may not be able to shift to EVs along with the
majority of society. This has potential to further marginalize these groups of people as they may
have to spend more time looking for working gas stations that are spaced farther apart than EVSEs
which may be located at the workplace for the people who do have EVs.

8. Cultural Shifts

With such a progressive change in society, there are likely to be effects on the way society
views the transportation and energy sectors. Currently, conventional vehicle drivers are able to fill
up a conventional vehicle in a matter of minutes, just enough time to grab a snack from the store.
EV batteries cannot be replenished as quickly as conventional vehicles can refuel and so drivers
may find themselves at the stations for longer. This introduced an opportunity to re-envision the
future of refueling. Charging stations could become hubs for EV essentials, places to meet for
lunch, even a spot to hold an interview. These stations must be redesigned so that EV drivers want
to pull into them to spend 20 or so minutes charging their car. They must be attractive and inviting.

One way to make these stations attractive could be the installation of solar panels as a
supplementary, or main (depending on the location’s solar resource), power supply. As coal
reserves begin to deplete, new sources of sustainable electricity generation must be found. This
combined with environmental activists may kickstart an accelerated movement towards

31
renewables. EVs have the potential to be the turning point at which renewable energies become an
economically-feasible way of the future.

Currently, automobiles play a large role in U.S. culture. It is the main method of transportation
for most people and enables people to go where they want, when they want, independently, and in
the comfort of their vehicle. Declining petroleum reserves and increasing gas prices threaten this
comfortable culture that Americans thrive on. EVs are the answer to this issue, they ensure that
the auto-centric culture present in the U.S. does not have to be interrupted. A new obsession may
appear over these electrified vehicles and society may begin to see electricity becoming almost
trendy. Shifts in the culture of the U.S. brought on by these new automobiles should be welcomed
as they are signs that EVs are becoming accepted and even loved by the American people.

9. Conclusion

Electric vehicles are well on their way to becoming a normal aspect of society. The shift in
energy source is encouraged by political, economic, and environmental factors. Moving towards
domestic sources of electricity rather than imported oil and domestic oil that is depleting will allow
the U.S. to enjoy energy security and a steadier economy. The increase in electricity demand will
present opportunities of new generation, namely from renewable sources such as solar and wind.
As EV technology advances, making these vehicles and their EVSE more inexpensive, more
Americans will be inclined to join the transition from conventional vehicles to electrified ones.
Currently, petroleum plays an enormous role in U.S. society, so making moves away from that
society will induce massive social and cultural shifts. These shifts present opportunities for change
in the way Americans view the transportation sector and energy consumption and should be
capitalized on while this next stage of societal evolution is just beginning.

32
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