Plug-in electric vehicles (PEVs) present an alternative vehicle technology to a market long monopolized by petroleum-fueled vehicles. Large-scale introduction of PEVs into the light-duty fleet would substantially reduce US oil consumption. It could also deliver important environmental benefits—specifically reduced emissions of greenhouse gases (GHG) and other pollutants—but these benefits will vary with the source of the electricity used to charge the PEVs. On the average US electricity generation mix and on a full-fuel-cycle basis, PEVs today offer major reductions in GHG emissions relative to conventional gasoline-powered vehicles and modest reductions over hybrids, while PEVs’ criteria pollutant emissions are typically somewhat higher than those of gasoline vehicles. GHG and criteria emissions associated with both vehicle types will decline in the coming years due to federal regulations, among other factors. In the longer term, however, meeting transportation sector climate goals will require vehicles that run on low-carbon fuels, such as PEVs running on electricity generated from renewable sources. There are therefore strong environmental and economic reasons to encourage a substantial presence of PEVs in the US vehicle fleet.

A wealth of policies and programs are in place to support PEV adoption, including federal, state, and local government measures; activities in the private sector; and activities undertaken by utilities and utility regulators to prepare for and promote PEV adoption. At the federal level, notable policies include a $7,500 consumer tax credit for PEV purchase, grants and loans to automobile manufacturers and suppliers for the development of advanced vehicles and batteries, and funding for consumer education and PEV deployment in communities. Recently adopted federal GHG and fuel economy rules also strongly incentivize the production of PEVs by virtue of these vehicles’ value in helping manufacturers comply with the new standards. At the state level, California has led the way in promoting PEVs and other advanced vehicles with a wide array of policies including its Zero-Emission Vehicle Program, the Low Carbon Fuel Standard, and incentive programs aimed at consumers, manufacturers, and infrastructure providers. A limited number of municipalities, including Los Angeles, New York, and Portland, have also taken steps to promote PEV adoption, such as investing in public charging infrastructure, ensuring favorable electricity rates for PEV charging, and purchasing PEVs for the city fleet.