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Enquiries: Brett McDonald Telephone:

08 December 2017

The Secretary Economy and Infrastructure Committee Parliament House, Spring Street EAST MELBOURNE VIC 3002

Online submission: electricvehicles@parliament. vic.gov.au

INQUIRY INTO ELECTRIC VEHICLES

The City of Port Phillip welcomes the opportunity to provide a submission to the Economy and Infrastructure Committee's Inquiry into Electric Vehicles.

The City of Port Phillip submits that:

• A rapid increase in the uptake of electric vehicle (EV) technology and a transition to a zero emissions vehicle (ZEV) fleet is important for the whole of Victoria.

• The State Government, in collaboration with key stakeholders such as local government and Distribution Network Service Providers, has a critical role in fostering and inducing long-term demand for EVs and ZEVs to improve social, environmental and economic outcomes for all Victorians.

• Targeted policy interventions are needed to catalyse the transformation ZEV fleet, incorporating electric vehicles.

• A statewide fleet comprised largely of electric vehicles (trucks, buses, passenger vehicles, motorbikes, scooters, bicycles) provides a multitude of benefits to the Port Phillip community.

We invite the State Government to partner with Port Phillip to explore opportunities to use our municipality as a test-bed of innovation- to trial policy experimentation and interventions before broad adoption across the state. The Port Phillip municipality offers:

o A community that encompasses the whole socio-economic spectrum o Different building typologies - single storey dwellings, low-rise and high-rise residential,

commercial, old, new, etc. o High percentage of buildings are leased, enabling policy interventions that target split­

incentives to be trialled o Highly urbanised, inner city community with potential for fast uptake of new technologies.

The City of Port Phillip

The City of Port Phillip Council Plan 1 (2017-27) sets out 6 strategic directions for the City:

1) We embrace difference, and people belong 2) We are connected and it's easy to move around 3) We have smart solutions for a sustainable future

1 The City of Port Phillip, City of Port Phillip Council Plan 2017-27, 2017, page 3 http:l/www.portphillip.vic.qov.au/ICP 2017-27 Section 1 Spreads.pdf

(website accessed 06/12/2017)

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Cnr Carlisle St & Brighton Rd. St Kilda Victoria 3182

Private Bag No 3, PO St Kilda Victoria 3 182, DX 35706 Balaclava VIC

Phone (03) 9209 6777 Facsimile (03) 9536 2722 assist@portphil llp.vic.gov.au www.portphil lip.vic.gov.au

ABN 21 762 977 945

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4) We are growing and keeping our character 5) We thrive by harnessing creativity 6) Commitment to the community

From these strategic directions emerge themes- connected, easy to move around, smart solutions, creativity, growth, and sustainable future - that relate directly to the social, environmental and technological transformation that comes with low emission and low pollution vehicle fleets.

The strategic direction that best relates to EVs is: • Direction 3 -We have smart solutions for a sustainable future, in particular; • Section 3.2 'A City with lower carbon emissions'

Council is working towards this outcome by embedding sustainability into Council's procurement, fleet and investment policies, and, we're also working with our community to reduce their GHG emissions, so together we can make a strong contribution towards meeting Victoria's zero net emissions target by 20502.

Potential benefits of widespread uptake of electric vehicles in Victoria The externalities of burning fossi l fuels inside internal combustion engines is well established. Burning fossil fuels leads to air pollution (e.g. carbon monoxide, sulphur dioxide, nitrogen oxides, volatile organic compounds, particulate matter- PM2.5 and PM1 0), and this chemical mix has profound consequences on both human health and State Government public health spending. Electric Vehicles can also act as a battery, storing energy when connected to the grid and potentially buffering the electricity grid during peak demand periods.

Coordinated & Targeted Interventions The State Government will need to consider a suite of consistent, coordinated, and targeted interventions that must:

• Address existing barriers that prevent the broad adoption of EVs. Common barriers include:

o Absence of public, accessible charging stations

o Capacity and technology relating to the electricity distribution networks

o Absence of planning policy requiring EV charging infrastructure to be installed in new developments

o High upfront cost of EVs

o Time taken to recharge

o Range anxiety

o Lack of familiarity with EVs

• Deliver multiple benefits in the short term and continue to deliver benefits over the long term

• Provide a level playing field for EVs relative to the historical and existing policies that induced demand for internal combustion engines, such as subsidies and government supported infrastructure.

2 State Government of Victoria, Victoria's Net Zero by 2050 Emissions Reduction Target, 2017, https://www.climatechanqe.vic.qov.au/media-releases/victorias-net-zero-by-2050-emissions-reduction-target (website accessed 06/12/2017)

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A Critical Policy: A State Government Electric Vehicle Target A critical policy will be the State Government establishing a long-term target (with an interim target to track progress) to adopt EVs for both State Government operations and the State of Victoria.

Much like the Victorian Renewable Energy Target (renewable energy generation targets of 25% by 2020 and 40% by 2025), the EV target must provide the whole EV supply chain and the community with the confidence needed to invest in EV Infrastructure and EVs for the long term. Such a policy setting would induce demand for new EV projects (vehicles, equipment and services), attract private investment, and help foster local job creation .

A welcome addition to an EV target would be a policy commitment to phase out fossil fuel powered transport by a certain date or ban sales of new cars fitted only with petrol or diesel engines. The State Government of Victoria would be very highly regarded if it joined China, India, France, Norway, Germany, the Netherlands and the United Kingdom3 in adopting such a leading policy position.

State and Local Government must create demand and induce supply The State Government must work with the local government sector and the electricity supply chain to create demand and induce supply of EVs, charging stations, and associated infrastructure. This outcome can be best achieved through the State Government using established procurement processes, e.g. State Purchasing Contracts (Motor Vehicles) to contract the supply of EVs, charging stations, and associated infrastructure. The State Government and Local Governments could use this State Purchasing Contract to purchase electrical vehicles as part of their annual renewal of fleet vehicles. The benefit of using an established SPC is the no/low barrier to participation, availability (for all local governments and state government departments and associated entities) and the flexibility to establish evaluation criteria that prioritises policy objectives, such as local manufacture of goods in the EV supply chain.

The broader market benefit of using this established process is that the high numbers and frequent turnover of vehicles in the State and Local Government fleets mean continual demand for new EVs while simultaneously creating a second-hand market for EVs. Importantly, fostering growth in the second-hand market for EVs helps address one of the key barriers of purchasing an EV: upfront cost.

Favour policy inventions other than direct financial support to individuals A suite of policy interventions have been implemented by National and State Governments around the world to reduce the capital cost of new EVs, via direct financial support to ind ividuals through direct subsidies/grants, and by avoided taxes when purchasing new EVs4.

While direct financial support would certainly help wealthy people, policy interventions (other than d irect financial support to individuals) should be sought first to benefit the whole community and address existing barriers that prevent the broad adoption of EVs.

Public Charging: Coordination required to build community confidence The State and Local Governments can lead by creating a network of publicly available EV charging stations that gives the community confidence they won't be stranded, helping overcome perceptions of range anxiety. The charging stations located at places of interest that the community frequent, such as shopping and medical centres, enables EV charging to be linked to fostering local economic development.

In formulating such a policy, the State Government must make EV charging stations easy to use, accessible and cater for all types of EVs. EV charging stations must be plug-play-pay, with standardised equipment (fittings), standard payment processes (debit/credit) and accessible by all. Facilitating the deployment of technologies currently in use in other jurisdictions, such as smart streetlight poles, through engagement with electricity distribution network service providers and local government is a specific intervention that could reduce the barriers to uptake in the community.

3 World Economic Forum, Countries are announcing plans to phase out petrol and diesel cars. Is yours on the list?, 2017, https://www.weforum.orglagenda/2017109/countries-are-announcing-plans-to-phase-out-petrol-and-diesel-cars-is-yours-on-the­list/ (website accessed 06/12/2017). 4 European Alternative Fuels Observatory Secretariat, European Union, Incentives & Legislation http://www.eafo.eulincentives­legislation, 2017 (website accessed 0611212017)

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Distribution Network Service Providers: a key stakeholder A key stakeholder in the installation of EV charging are the Distribution Network Service Providers (DNSPs). EVs and charging stations provide new customers and represent a new electrical load on the local electricity grid. DNSPs need to be supportive and enable uptake of EVs. Utilising the potential of EVs as energy storage devices would require coordination by the various DNSPs supporting the electricity supply chain.

The State Government must use the leverage at its disposal to establish terms with the DNSPs that deliver good social and environmental outcomes without imposing high transaction costs (time, financial) when installing EV charging infrastructure and when charging EVs. Transparent and consistent rules across all DSNPs are required to encourage the installation of EV charging infrastructure. Low network tariffs (fixed and variable costs) are also needed to keep the operational cost of EV low relative to the operating costs of a vehicle powered by an internal combustion engine.

Private Charging & the Planning Scheme: State Government leadership required EV drivers need to be supported by a policy framework that enables them to adopt EV charging at or near their place of residence or work. The State Government can play a strong leadership role and create a strong planning framework that fosters and enables the installation of private electric recharging points suitable for electric vehicles, electric bicycles, and mobility aids.

The State Government could consider targeted policy positions via the planning scheme to encourage the adoption of EV charging to be included on-site across different building typologies, such as is adopted for car parking, car share and bicycle parking provision. Importantly, the policy should consider and overcome the split incentive between building owners and renters.

EV & car share providers The City of Port Phillip is home to over 150 car share vehicles, with a policy position to gradually increase this to 300+ car share vehicles. During community consultation on Council 's Car Share Policy in 2016 there were multiple requests for electric car share vehicles. Currently, EVs are not part of the car share fleet as their purchase price and the cost of installing recharge stations is prohibitively expensive. In addition, drivers are less familiar with EVs.

The City of Port Phillip's car share policy requires car share providers to deliver year-on-year decreases in GHG emissions. This policy objective will make EV and ZEV car share vehicles increasingly attractive to car share providers. It is anticipated that EVs will become more familiar and less daunting to the community and car share may provide opportunities for the community to join the movement to EV and ZEV.

EV & bike share providers In parallel with car share, the potential for dockless bike share as a disruptive mobility choice has been evidenced by the recent deployment of obikes, with other dockless bike share operators scheduled to commence in Victoria in 2018. Many of the issues with dockless bike share has been community complaints about lack of management and adverse amenity impacts with ad-hoc bicycle parking and obstructions across the footpaths and public space. As evidenced by other world cities the State Government has an important role to play to provide a regulatory framework to mandate EV dockless bike share across Greater Melbourne that will address this management complaint with bikes required to be docked in EV bike stations for charging.

Thank you for the opportunity to comment on this inquiry.

We would be happy to discuss further any other points in our submission. Further inquiries regarding this submission can be directed to Brett McDonald, Senior Greenhouse Projects Officer Executive Officer by email at or by phoning .

Kind Regards,

Cl · Ferres Miles General Manager, Place Strategy & Development