On Aug. 13, Executive Director of MichAuto and Chief Automotive and Innovation Officer of the Detroit Regional Chamber, Glenn Stevens Jr. joined Policy Principal of Michigan Energy Innovation Business Council Sophia Shuster, Administrator of MDOT Office of Passenger Transportation Jean Ruestman, and Chief Executive Officer of Rivenoak Consulting Valerie Brader, for a discussion on Michigan’s 2022 MI Healthy Climate Plan, with a focus on decarbonization efforts as it relates to EVs and public transportation.
Barriers to Decarbonizing Michigan’s Signature Industry
The automotive and mobility industry is facing significant barriers in its decarbonization efforts, primarily due to unclear utility regulations that impede the rollout of advanced technologies such as autonomous driving and EV infrastructure. As Brader noted, “As cars can do even more, we’re going to need to keep being clear about utility rules,” underscoring the importance of establishing robust frameworks. As an example, Michigan has initiated efforts to clarify these regulations, especially regarding home backup power systems.
Another barrier the industry is facing is the considerable work to be done on the permitting process for essential components like transmission lines. Currently, the Detroit Region is “almost 100% beholden to Asia for all our battery supply and technology,” a situation that Stevens highlights is not sustainable.
Lastly, no surprise to anyone, political divisions have further complicated these discussions, with concerns that “the state can’t grow with this mindset. This is not about right or wrong or whether we want to grow. People move forward,” Stevens expressed.
The industry could struggle to provide access to essential services like work, healthcare, and education. This lack of accessibility ultimately hinders overall progress in decarbonization and EV deployment. Stevens emphasized, “If people can’t get to work, life, healthcare, and education, they can’t thrive.” Thus, addressing these challenges is crucial for the state’s growth and the well-being of its residents.
Viewing Public Transit as a Social Service vs. a Private Business
Electrification of public transit faces key barriers that need to be addressed to promote wider adoption. One significant obstacle is the availability of buses in various sizes, along with the appropriate battery technology to support them. Additionally, the cost of the necessary infrastructure can be a considerable hurdle. Without a robust framework supporting electrification, efforts may stall.
As it relates to expanding public transit, funding remains a prominent issue, hindering the growth of transit systems. Moreover, there is a shortage of bus drivers, which can delay services and reduce overall capacity. Public perception plays a critical role in this context; there exists a sense of range anxiety for EVs, which parallels the hesitance some individuals feel about utilizing public transit.
“It’s a freedom issue, and if people see it as taking away their freedom rather than increasing all the other possibilities, they’re not going to make that switch,” Ruestman emphasized. “Public transit increases the economic viability of our state, increases the overall health of our citizens, and is good for our environment. We need to stop treating it like a private business, and fund it like we would any other public utility or public good.”
By changing this perspective, we can foster a more robust and efficient public transit system that meets the needs of everyone in the community.
Increasing Productivity Through Education and Outreach
Shuster emphasized the urgent need for a more intentional approach to public education regarding electric vehicles EVs. Rather than relying on the current pace at which information is disseminated, it is crucial to focus on educating the public about the value of EVs.
“70-80% of Americans don’t know their utilities have programs,” Shuster stated, highlighting the gap in awareness of existing incentives and resources. It is essential to bridge this knowledge divide so that more people can make informed decisions about adopting electric vehicles.
Many people are unaware of the significant benefits these vehicles can offer, particularly in terms of their contributions to the grid and local communities. As Shuster noted, “A lot of conversation is going around if EVs are paying their fair share, but if you look at the capabilities EVs have to give back to the grid and the communities, you reevaluate what that fair share means.”
This reassessment is vital for fostering a deeper understanding of how having EVs in the neighborhood can positively impact everyone.
Furthermore, education must extend to individuals who are considering vehicle ownership or are unsure about their options.
Brader pointed out the necessity of reframing the discussion around the cost savings associated with EVs, beyond their environmental benefits, highlighting that it is more persuasive than focusing solely on environmental benefits.
“Those who really care about the environment are already sold on EVs; I think we have done a really bad job of messaging how much cheaper an EV is to own,” she said. “Once people are convinced it’s cheaper and especially when they upfront-cost less, I think it’s going to be something that goes very quickly. “