Disparities in Residential Charging Access

Electric vehicles (EVs) represent a promising step toward a more sustainable future, yet vehicle financing and equitable access to affordable charging in multi-unit dwellings (MUDs) continues to create barriers to adoption. Supporting charging access in historically marginalized communities by installing EV charging is important, but developing programs that make charging more affordable is a critical next step for drivers to plug into the benefits. By discussing the key challenges and sharing case studies and strategies, the Smart Electric Power Alliance (SEPA) is kicking off its next initiative to address equitable access.

State of Equity

Income and housing type contribute to disparities in residential charging access. These inherently impact an individual’s ability to capture the full range of electrification benefits. Residents who live in single-family homes are well-positioned to transition to an EV. For residents in single-family homes who can charge in their garage or driveway and access time-of-use rates or special discounts from their utility, the total cost of ownership (TCO) of an EV is significantly lower than a comparable internal combustion engine (ICE) vehicle. Around 31% of U.S. households live in MUDs, such as condos, apartments, and duplexes, where access to charging is less readily available [1], and around 75% of these households own at least one vehicle [2]. The lack of convenient and affordable charging options not only adds difficulty to the daily lives of the one-third of U.S. residents who live in MUDs but also discourages broader clean transportation adoption for those who would benefit most from access to an EV.

Many utility programs lower EV charging costs for homeowners through make-ready support and rates, yet these programs disproportionately benefit single-family home residents, and very few target the unique needs of MUD residents [3]. Federal-level programs [4] have sought to install charging in corridor and community locations [5]. While many communities participating in these grant programs have charging infrastructure that address longer dwell times, it is seldom co-located in residential areas and often in the heart of regions that offer various amenities but minimal walkability for residents to park and return home. While these utility and federal programs have successfully filled gaps in the larger charging network, applied downward pressure on rates as a whole, and ensured access to inter- and intra-state travel, they have not addressed communities that experience a high burden of pollution.

Financing and Access to Capital

MUD residents, particularly those in low-income, disadvantaged, and marginalized communities, face acute financial barriers that can result in a much higher TCO, leading to an inequitable distribution of electrification benefits. Specifically, programs must directly address the cost of poverty in these communities to deploy clean transportation equitably. The high upfront cost of EV ownership has historically made EVs inaccessible to low-income individuals. Even in scenarios where used EVs have a cheaper upfront cost than their ICE counterparts, the financing options available can be problematic for low-income buyers. For those with low credit scores who experience the burden of poverty, financing a vehicle can be exceptionally difficult due to the current auto loan rates ranging from 8-18% [6]. Predatory and discriminatory lending practices impact marginalized communities, further exacerbating inequity and widening the gap for EV ownership.

MUD residents primarily rely on public charging, which is often more expensive than charging at a single-family residence and rarely co-located or within walking distance of MUDs. Moreover, while some MUDs offer EV charging on-site, many cannot afford the upfront installation cost despite make-ready support from the local utility. MUD owners with adequate capital and credit who can secure loans are generally located in affluent areas or do not offer affordable housing. Conversely, MUDs located in disadvantaged communities experience access discrimination to charging – as the focus of these complexes is predominantly on providing services or priority repairs in lieu of EV charging. This locks out those who would benefit most from the benefits of lower fuel and maintenance costs and improved local air quality that EV adoption affords.

The Goal of Ubiquitous Access

Numerous organizations are exploring strategies to increase access to EV charging. These initiatives offer practical solutions and serve as models for addressing the complex challenges that MUDs face.

SEPA’s Benchmarking Equitable Transportation Electrification Report
In collaboration with the Electric Power Research Institute, SEPA developed a comprehensive toolkit for evaluating equity within transportation electrification, including benchmarking metrics, best practices, and program guidance. The toolkit features key findings, 16 modules on different transportation electrification programs (including MUD programs), and a detailed report on benchmarking equity in transportation electrification. Decision-makers can use this resource to ensure their work results in a more equitable transition to electric transportation.

Dallas Prioritizes Equitable Access for EV Charging in Multifamily Housing
The Dallas-Fort Worth Clean Cities Coalition has taken significant steps to ensure equitable access to EV charging for residents of multifamily housing by partnering with the Apartment Association of Greater Dallas. Utilizing Geographic Information Systems (GIS), the coalition identified key areas lacking EV charging and secured grant funding to install charging stations in these underserved communities while promoting the benefits of electrification to property owners through coordinated outreach efforts. Their work has substantially impacted their local community through strategic partnerships and data-driven planning.

Case Studies: City Public & Curbside EV Charging Strategies [7]
The policy brief by Berkeley Law highlights strategies to increase equitable access to EV charging by leveraging curbside chargers on utility poles, engaging community stakeholders, and providing incentives for private installations in multi-unit dwellings. While predominantly focused on operations and planning, these case studies aim to reduce installation costs and enhance accessibility for residents without private driveways, promoting widespread EV adoption across diverse neighborhoods. The brief draws on analysis and interviews with leaders from the following programs:

• Berkeley, California: Residential Curbside Permitting Pilot
• Los Angeles, California: Streetlight Charging Program
• Melrose, Massachusetts: Streetlight Charging Pilot
• New York City, New York: Curbside Pilot Program
• Portland, Oregon: Public Right-of-Way Code Update Project and Utility Pole
  Charging Pilot
• Seattle, Washington: Public Right-of-Way Permitting Pilot and Curbside Charging Program
• Washington, D.C.: Residential Curbside Program and Permitting Program

Facilitating Equitable Access

Equity is derived from a suite of ongoing, intentional actions. Utilities, municipal and state governments, local businesses, and EV charging companies can take the necessary steps to ensure that the benefits of EV ownership are accessible to all, regardless of their housing situation.

1. Targeted Incentives: Offer grants, incentives, or rebates designed for multi-unit dwellings (MUDs) in underserved or disadvantaged communities to offset installation costs and make incentives available to residents or property owners.
2. Public-Private Partnerships: Collaborate with local stakeholders and leverage data analytics to prioritize and identify high-priority areas for projects.
3. Education and Outreach: Conduct extensive outreach to local stakeholders, ensuring coordination and education for MUD owners and managers. Identify opportunities to improve and develop processes within your own channels.
4. Flexible Financing Options: Develop financing programs that include low-interest loans or lease options for EV charging equipment to reduce the upfront financial burden on property owners.
5. Regulatory Support: Advocate for a future centered around accessible charging. Regulation and building codes that require EV-ready infrastructure in new construction and major renovations allow a seamless transition.
6. Community Engagement: Engage directly with residents in underserved communities to understand their specific needs and challenges. Use this feedback to tailor programs and ensure they effectively address local barriers to EV adoption.
7. Data-Driven Planning: Utilize Geographic Information Systems (GIS) and other data tools to map current infrastructure, identify gaps, and deploy new charging stations. Some tools include:
   1. Environmental Protection Agency (EPA) – EJScreen
   2. Department Of Energy (DOE) – Low-Income Energy Affordability Data (LEAD) Tool
   3. Argonne National Laboratory (ANL) – EV Charging Justice40 Map Tool
   4. White House – Climate and Economic Justice Screening Tool
   5. Department of Energy (DOE) & National Renewable Energy Laboratory (NREL) – SLOPE: State and Local Planning for Energy

While these measures are crucial steps toward increasing equity, they represent just the beginning of a broader, more comprehensive effort. As the EV transition moves forward, it’s critical that we continue to innovate and explore solutions that create a more inclusive future. To that end, the industry must explore new business models to provide a comprehensive selection of offerings.

How You Can Get Involved: Upcoming EV Equitable Access Work

SEPA is proud to announce a new project with GRID Alternatives and other partners. This project seeks to develop replicable business models for affordable public charging in partnership with the utility sector so that everyone, regardless of dwelling type, can have equitable access to EV charging infrastructure. This initiative tackles the challenges low-income renters face with EV adoption, like high public charging costs and the lack of affordable options.

As part of this initiative, SEPA will spearhead the development of an Energy Equity Community of Practice in coordination with a diverse group of utilities, including publicly-owned utilities, investor-owned utilities, and rural electric cooperatives in geographies across the country with different EV adoption levels. The Energy Equity Community of Practice will continue to meet throughout the project to share lessons learned from ongoing pilot projects and disseminate best practices throughout the sector. If you’re a utility provider, city planner, or community advocate interested in getting involved, please contact Ashley Lynn Qua, Senior Manager of Transportation Electrification, at <[email protected]>.

Learn More About SEPA’s other work in Energy Equity & Inclusion

• SEPA’s work in Energy Equity and Inclusion spans all our focus areas. Discover your role in the equitable energy transition by checking out these related resources from SEPA’s Energy Equity & Inclusion page and Knowledge Center.
• What Is Energy Equity and How Can We Enable an Equitable Energy Transition?
• Layered Energy Equity Definition Tool
• Equity in Transportation Electrification
• Inclusive Utility Investment: Beneficial Electrification, VPPs and Equity Webinar
• Utilities and the Duty of Social Equity

To learn more and get involved, reach out to Mary Palmer, Director of Energy Equity and Inclusion, at <[email protected]>.

References

1. Analysis of 2019 Census Bureau residence data in National Association of Home Builders, “Multifamily Homes: Types and Trends,” Accessed June 14, 2024, https://www.nahb.org/other/consumer-resources/types-of-home-construction/Multifamily.
2. Analysis of 2022 Census Bureau vehicle ownership data in National Multifamily Housing Council, “Household Characteristics,” Updated November 2023, www.nmhc.org/research-insight/quick-facts-figures/quick-facts-resident-demographics/householdcharacteristics/.
3. “Electric Vehicle Charging for Multifamily Housing,” U.S. Department of Energy Alternative Fuels Data Center, Accessed June 14, 2024. https://afdc.energy.gov/fuels/electricity-charging-multi.
4. Charging and Fueling Infrastructure Discretionary Grant Program,” Federal Highway Administration, Accessed June 14, 2024, https://www.fhwa.dot.gov/environment/cfi/.
5. “National Electric Vehicle Infrastructure Formula Program,” Federal Highway Administration, Accessed June 14, 2024, https://www.fhwa.dot.gov/bipartisan-infrastructure-law/nevi_formula_program.cfm.
6. “Best Auto Loans Rates in July 2024.” Bankrate, Accessed July 5, 2024. https://www.bankrate.com/loans/auto-loans/rates/.
7. Lamm, Ted, and Malcolm Johnson. EV Equity Initiative ed., Berkeley Law, 2024, CASE STUDIES: CITY PUBLIC AND CURBSIDE EV CHARGING STRATEGIES. https://www.law.berkeley.edu/wp-content/uploads/2024/03/City-Public-and-Curbside-EV-Charging-Strategies_CLEE-Brief_Mar2024.pdf