Budget for commercial EV customers doubles to $58M.
Governor Kathy Hochul recently announced that the New York State Public Service Commission (PSC) made significant changes to the state’s electric vehicle (EV) “make-ready” program to speed up the transition to zero-emissions EVs.
The PSC-approved changes include increasing the overall ratepayer-funded EV Make-Ready Program from $701 million to $1.24 billion, with $372 million in funding to support programs in disadvantaged communities—a notable boost from the previous $206 million budget. The additional funds dedicated to disadvantaged communities will help ensure all of the state’s residents will benefit from investments in clean transportation.
“To reach our nation-leading climate goals, New York is energizing our transition to a clean transportation future,” Governor Hochul said in a statement. “More New Yorkers are making the switch to electric vehicles, and we’re working hard to build accessible charging infrastructure across the state. The program improvements announced today will encourage more people to own EVs, helping to build a clean and sustainable future.”
The announcement introduced a new, micro-mobility make-ready program that supports charging infrastructure for e-bike, e-scooters and other forms of electric mobility in disadvantaged communities through the state.
“Electrifying our transportation network is a crucial step in helping reverse the negative impacts of climate change, a goal we share with the State of New York,” Caroline Samponaro, VP of Public Policy at Lyft, said. “That's why the investments being made here today are so important; they will help break down the primary barriers to widespread EV adoption, while also allowing us to charge Citi Bike ebikes on the street. We applaud Governor Hochul and the Department of Public Service for their leadership on this crucial issue.”
The budget increase also includes expanding the direct current fast charging program target from 1,500 to 6,302 charging stations.
The changes are meant to speed up EV charging infrastructure development in order to decrease New York drivers’ “range anxiety” as well as ensure them that convenient and reliable EV charging will be available. The announced programs are expected to generate a $4 billion total investment in EV charging infrastructure. This investment comes as there are currently 175,000 electric or plug-in hybrid EVs on New York’s roads today, with approximately 3 million expected by 2030.
Commercial EVs were a big part of this infrastructure buildout announcement. The medium- and heavy-duty make-ready pilot budget designed for commercial customers more than doubled to $58 million. This budget increase was paired with additional flexibility for applicants regarding eligible costs and vehicles—particularly those targeting emission reductions in disadvantaged communities.
The PSC expects that the changes to the medium- and heavy-duty make-ready pilot will unlock investment in this sector, and create critical experience for fleet owners and utilities, as the Commission considers more programmatic needs in a separate proceeding.
Additionally, the PSC approved new beneficial rates and programs for commercial EV-charging customers in a separate order. The new programs will make commercial EV-charging eligible for rebates or subsidies of up to 50 percent of the demand charge costs on their delivery bills.
Commercial EV-charging customers in downstate New York will also be eligible to participate in new managed charging programs to receive even more savings that also benefit the grid. Commercial managed charging programs are still under development in upstate New York and are expected to be available in 2024.
“Today’s announcement from Governor Hochul sets the table for a comprehensive transition to electrified transportation,” CALSTART President and CEO John Boesel said in a statement. “New York’s new and improved programs will bring the benefits of clean transportation to more drivers, fleets, and communities, with a much-needed focus on delivering expanded access and cleaner air to disadvantaged communities.”
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