California's emissions reduction goals for criteria air pollutants (CAPs) and greenhouse gases (GHGs) have encouraged policies that support plug-in electric vehicles (PEVs). This paper explores current and planned policies that promote PEVs, potential emissions benefits from PEV adoption in California by 2020, and future policy directions. The reviewed policies include the zero-emission vehicle regulations, the low-carbon fuel standard, and the clean car standards, which all require GHG reductions. Policies prompted by the California Public Utilities Commission Alternative-Fueled Vehicle Rulemaking decision and existing and planned PEV incentive programs are among the forthcoming and expected policies that are discussed. An analysis was conducted to estimate and to value GHG and CAP emissions reductions from PEVs in California by 2020. Results of this analysis show that the reduction in tailpipe emissions dominate any added power plant emissions and value the benefits at $750 to $1,500 per vehicle in an expected PEV penetration scenario (where PEVs are predominantly plug-in hybrid vehicles) and $1,000 to $2,500 per vehicle in an aggressive penetration scenario (in which battery electric vehicles comprise one-third of all PEVs). The assignment of monetary value to benefits provided a basis for justifying future PEV subsidy programs. The policy review and emissions analysis set the stage for a discussion of California's PEV-related policy outlook, including possible policy directions that would coordinate PEV-related programs, distinguish electric fuel from electricity used for other purposes, and provide stable, long-term incentives for PEV deployment.
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