~ First to 50,000 ~The Atlanta Electric Vehicle Race

The Electro Jackets:

Jeremy Kobus & Satyam Vyas

Electro Jackets

Jeremy Kobus

MBA student at Georgia Tech

M.S. International Affairs

B.A. Political Science

Contact: jwkobus@gmail.com

404-822-0757

Satyam Vyas

MBA student at Georgia Tech

M.S. Automotive Engineering

B.S. Mechanical Engineering

Contact: satvyas@gmail.com

510-505-4960

Problem Statement:

What is the best strategy for Atlanta to achieve its goal of being the first American city to have 50,000 electric cars on the road?

Source: Jeff Pittman Art

Agenda

Why?

Market Forecast

Charging Infrastructure

Policy / Regulations

Atlanta Public Relations

Website / Social Media

Public Incentive – TPOFEVAP

Go Big or…

Conclusion

“If you want to build a ship, don't herd people together to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea.”

“It matters not how much capital you may have, how fair the rates may be, how favorable the conditions of service, if you haven’t behind you a sympathetic public opinion, you are bound to fail.”

Why?

What we think, or what we know, or what we believe is, in the end, of little consequence. The only consequence is what we do.

—John Ruskin

Market Forecast

Demographics of EV Owner

1) 45 years or older Baby Boomer2) Average HH income of $111,000/year3) Homeowner with a garage4) Environmentally Conscious5) Higher Education Levels

Assumptions

1) HH income $100,000/year

2) Typical owner over 40 yrs old

3) Assume consumers with $100,000 income will have a house with a garage

3) Did not quantify views on the environment or education

5) Metro Atlanta Region includes 21 counties

Source: Deloitte Survey

Market Forecast

City of Atlanta

160,467

15%

24,070

Metro Atlanta

1,696,111

16.8%

284,946

Conclusion: The City of Atlanta may have more environmentally conscious citizens, but the metro Atlanta area has a much larger target demographic.

Source: US Census 2000 and 2010

Age > 40 yrs

% HHI $100k +

Potential Market

Source: US Census 2000 and 2010

Charging Infrastructure

AND…

Utility companies, such as Georgia Power, offer favorable prices for PEV owners:

• On-peak: June-Sept, Weekdays, 2-7 pm, non-holidays

• Off-peak: Majority of hours in the year

• Super-off peak: 11 pm – 7am, all year

Source: Georgia Power website

Utility Rates in Georgia are already amongst the lowest in the country

What does this mean?

Charging Infrastructure

LOW Electric Power Rates (GA)+

Super off-peak scheduling incentives (geared towards peak charging hrs)

Lots of financial incentives to go Electric

Need one more … to develop infrastructure

+

(up to) $5,000 state tax credit+

(up to) $7,500 federal tax credit

=

Already great incentives to buy EV:

Charging Infrastructure3-tier strategy to develop infrastructure

Tier 1: Free charging for one year, for first 1000 EV commitmentsBrief Program Restrictions: Clarification1) Consumer must commit "intent to purchase/lease of

vehicle" by 12/31/11, and take delivery by 01/31/11City must work with OEMs to ensure that initial demand for initial 1000 will be available within timeframe

2) Must live / work within key market areas, as previously identified by city

ITP and select OTP cities, such as Dunwoody, Alpharetta, etc, that closely match target buyer demographic and range requirement from city

3) Consumer must allow City to track vehicle routes either via cell phone GPS or through onboard system for 3-6 months

Minimum of 3 months and a maximum of six months. This will allow city to strategically plan public charging stations based on REAL data within six months

4) Electricity will, in effect, be 'free' if consumer does all charging at home, between the specified hours of 11 pm to 7 am

City will commit to reimburse 'super off-peak' usage, provided consumer receives power from pre-approved provider (I.e. Georgia Power)

Source: Nexus404.com

Charging Infrastructure3-tier strategy to develop infrastructure

Tier 2: Free public charging in designated metro areas

Brief Program Restrictions: Clarification

1) Designated to key market areas, determined real data from Tier 1 rollout

City Plans will be for total of 21,000 public charging stations by 2-year mark (1.4*50,000*0.3), but will initially roll out 2,000 by 7/31/11 at government-owned locations

2) Free 1-hour charging for on-peak, 2 hours for off-peak, and 3-hours for super off-peak, for first 12 months

Will allow for free parking during this time as well, and will allow city to confirm strategy

3) Free public charging incentive to apply to local businesses as well

Charge data to be provided to city of Atlanta for prior to Tier 3 rollout

Source: PG&E

Charging Infrastructure3-tier strategy to develop infrastructure

Tier 3: City to waive all permit costs associated with L2 EVSEs for business installations that allow public charging

Brief Program Restrictions: Clarification

1) Businesses must be in key market areas, as identified by the City of Atlanta

Information based on data from Tier 1 and Tier 2 rollouts - City of Atlanta will invite all businesses in designated market area to take advantage of limited-time program

2) Installer will be city-approved electrical contractor, with pre-negotiated install rates (Business free to choose Level II EVSE equipment)

This will allow city to control install, and limit funds needed by business

3) Total market cap will be set at 21,000, or expiration date of December 2013, which ever comes first

City must provide education material, as well as showcase advantages to local businesses over the long-term

Policy: Infrastructure

Modify city building codes :

• Working with independent standards organizations, Atlanta can have all new home constructions built with a 220-volt outlet in the garage or near the driveway starting in 2012

• In interim, meet with builders to discuss incorporating appropriate wiring earlier Source: Mopar Magazine

Regulatory: Challenges

Problem

Atlanta’s permitting process for level 2 single family residence is too bureaucratic for large scale EV adoption.

Assumptions

Very few new homes will be built in the Atlanta Metro Area over the next decade

Electric cars will be charged at home 81% of the time (Source: Deloitte Study)

Level 1 charging is too slow to be practical (Source: Deloitte Study)

Do not need large amounts of public charging infrastructure for first wave of EV buyers

People are responsible most of the time

Regulatory: Solutions

Brief Overview of Current EVSE

Installation Process

1) Homeowner Selects electrical contractor

2) Fills out electrical Permit Form with contractor

3) Submit Permit, Pay Fee’s

4) Permit is issued

5) Contractor installs EVSE

6) Property inspection by Office of Buildings

Legislation

The National Electric Code is NOT law, unless the state adopts it.

Waive Atlanta Electrical Permit Form

Waive inspection by Office of Buildings

Require Electric Contractors to take EVSE Safety Training

City will conduct random inspections, contractor license revoked if some threshold of safety violations are found

Updated Process

1) Homeowner selects state approved & trained electrical contractor

2) Contractor installs EVSE

PR: Atlanta Key Groups

Contact key influential leaders in:

• Social groups

• Economic groups

• Geographic groups

• Cultural groups

• Age groups

• Doctrinal groups

• Language groups

• Collegiate groups

Goal

Our aim is not to urge the buyer to demand the product now, but to transform the buyer’s world, so that the product will appear desirable as if without the prod of salesmanship. It must come to him or her as their own idea.

People don’t buy products they buy “states”

PR: Website / Social Media

Atlanta’s Office of Sustainability website needs improvement:

• Lacks visual appeal• Too much text, not enough

engagement• Boring

Advice:1. Users appreciate quality and credibility

•But … they don’t read, they scan2. Web users need instant gratification

•Easily navigable website3. Review 10 principles to Effective

website design: •Written by Smashing Magazine’s

Editor-in-Chief, Vitaly Friedman

Try Social Media:

• Get the word out!• Introduce EV Project goals through a

medium such as

Consumer education is needed to increase acceptance / awareness

TIS: TPOFEVAP

Teachers, Police Officer, Firefighter Electric Vehicle Assistance Program

Idea: Instead of additional tax credits or rebates, the City of Atlanta will provide targeted financial incentives for teachers, police officers, and firefighters to purchase an Electric Vehicle.

TIS: TPOFEVAP

Goal: Increase the volume of electric vehicles and their visibility in the Atlanta community

Scope: Annual award process through a multidepartment review system

Competitive Advantage: Targeted award system that maximizes the impact of city and state incentives

Logic: Middle class Americans driving EV’s. Affordability, utility, and payback discussed and observed by peers and other middle class Atlantans. The concept is organically spread throughout the community.

Go Big Or…

2014 Atlanta World’s Fair

• The creation of a Modern World’s Fair

• Exactly 150 years since the burning of Atlanta

• Music, Arts, Sports, Technology, Education, Commerce

• Construction of a landmark monument exhibiting Atlanta’s commitment to clean energy and next generation electric technology

Conclusion

Questions and Comments?

I desire what is good, therefore, everyone who does not agree with me is a traitor.

- King George III