Energy for What’s Ahead Lisa Arellanes Our Transportation Electrification Pathway Lisa Arellanes Senior Manager, eMobility April 24, 2019

We’re Driving The Agenda: The Emissions Challenge ICT Support Charge Ready Transport Program SCE is Here to Help

California’s GHG Emissions Reductions Goals Agricultural 8% Residential & Commercial 11% 39% Transportation 19% Electric Power 17% Industrial 6% Transportation- Related Industrial CA GHG Objectives Southern California is one of the most desirable places to live. It also has some of the worst air quality in the nation despite significant progress to improve. Climate change is causing sea levels to rise and heat waves to become more intense. By burning fossil fuels, we are making each other sick. California set a goal to reduce emissions 40% below 1990 levels by 2030, and 80% by 2050 The paths to decarbonization are uncertain Governor’s Executive Order calls for 5 million ZEVs by 2030 At the end of 2017 we issued our Clean Power and Electrification Pathway white paper, our proposal to fight climate change and improve air quality. The largest contributors to our GHG emissions problems is transportation (you cannot achieve goals without transportation), followed by the electric sector. Industrial, and Commercial and Residential sectors trail not too far behind. The most practical and economical way to create real change is for sectors to work together to find an affordable alternative to fossil fuels If we want to get to zero emissions, eventually we have to replace many of the things we rely on today that require combustion.

Transportation Electrification Pathway to 2030 20x increase SCE Strategy to Achieve State GHG Goals The Pathway is an integrated approach with two other major goals: 80% carbon-free electricity and nearly 1/3 of space and water heaters electric by 2030, but focuses on the transportation sector. To reach our state’s GHG & air quality goals SCE’s Pathway - 7 million light-duty electric vehicles on the road by 2030 (24% of all light-duty compared to less than 1% today), as well as 15% of medium duty and 6% of heavy duty and buses also converted to electric by 2030. That’s just 12 years away, but there are commercially-available vehicle options in the light and medium-duty spaces, as well as short-haul heavy-duty vehicles, with many long-haul vehicles planned to roll out in 2019-2020. Access to charging at home and at work is a top priority for EV drivers Charging at home is expected to continue to be dominant preference for EV drivers Charging at workplaces is beneficial for PHEV and short-range BEV drivers and some long-range BEVs Workplace charging benefits adoption through increased visibility, decreased range anxiety, and trusted conversation with coworkers Short-dwell locations (i.e., shopping centers) do not significantly increase eVMT2 EV population November 2018: SCE – 158,258 (15% of US market ~1,039,750) Clean Power and Electrification Pathway white paper available at: sce.com/pathwayto2030

82% of NOx emissions are caused by mobile sources Vehicle pollution impacts a concentrated number of communities disproportionately Southern California’s Air Quality Problem SCE has the only air basins (South Coast and San Joaquin Valley) in the entire country that are in “severe non-attainment” according the US EPA – due to vehicle emissions NOx sources in LA Basin 42% of NOx emissions come from medium- and heavy-duty and non-road vehicles 24% come from light-duty vehicles. 10% rail, 6% other mobile 18% stationary In SCE’s service area, the communities most heavily impacted by the associated air pollution from transportation are disadvantaged communities These communities are disproportionately impacted by the pollution caused by transportation both to and from warehouses and factories and along major freight corridors NOx (Nitrogen Oxides) cause asthma and respiratory disease Transportation has an even greater impact on air quality than on GHG emissions in California – accounts for more than 80 percent of NOx and 95 percent of particulate emissions in the state Meeting 2032 attainment deadlines is more difficult than meeting the state’s 2050 GHG goal as far as pace of commercialization of TE and other technologies according to CARB Heavy-duty EVs reduce NOx up to 60 times more per kWh than renewables or energy efficiency Light-duty EVs reduce NOx about 8 times more per kWh 82% of NOx emissions are caused by mobile sources Note: Communities are considered DACs if they are in the worst quartile of environmental & economic burden, as evaluated by the California EPA using CES 3.0. Freight corridors.

We asked transit agencies about their top concerns regarding Innovative Clean Transit (ICT) regulation 20+ agencies responded Directors of Maintenance Fleets & Facilities Executive Directors Engineers Project Managers Analysts Range of Fleet Sizes 8 to 2400 Current Electric Buses in Fleet 0 to 33

Charging infrastructure topped the list of concerns

SCE’s is here to support your ZEB Rollout Plans Charge Ready Program Phase II Training 06/2015 SCE’s is here to support your ZEB Rollout Plans Estimated schedules for construction of facilities and infrastructure upgrades for bus charging Information on available funding from our infrastructure programs to support electric buses Customized estimates of electricity costs and LCFS credits to assist you in comparing fueling costs Suggestions for a phased-in approach to ZEB procurement and infrastructure deployment to avoid interruptions to your operations Speaker: Lisa CARB’s intent: “Information from the Rollout Plans will help the State in developing incentive funding plans, inform utilities about potential electrical updates, and engage the general public about the environmental benefits of ZEBs.” Individual ZEB Rollout Plans filed by transit agencies must include the following A goal of full transition to ZEBs by 2040; a schedule for buses purchases and lease options, including bus types, fuel types, and number of buses; A schedule for construction of facilities and infrastructure modifications or upgrades, including charging, fueling, and maintenance facilities, to deploy and maintain ZEBs, including the general location of each facility, type of infrastructure, service capacity of infrastructure, and a timeline for construction; Plans to deploy ZEBs in disadvantaged communities (DACs) A training plan and schedule for ZEB operators and maintenance and repair staff; and Identification of potential funding sources A transit agency’s Board of Directors must approve the Rollout Plan through the adoption of a resolution, and submit the Rollout Plan and a copy of the resolution to the CARB Executive Officer by June 30, 2020, for a large transit agency and June 30, 2023, for a small transit agency. BCD Account Management

Charge Ready Program Phase II Training 06/2015 Funding Opportunities Improve ROI from Acquisition to Operation for Fleet Owners Vehicles Infrastructure Fueling + + $30,000 - $175,000 from HVIP Free infrastructure from grid to chargers through SCE’s Charge Ready Transport Program SCE EV Rates – Zero demand charges until 2024 Up to $60,000 from Carl Moyer Low Carbon Fuel Standard Credits (LCFS) FTA Low/No Program for Transit Buses HVIP Other utility incentives Regional incentives Speaker: Lisa For the vehicles, state and federal funding opportunities available for ZEBs. The Hybrid and Zero-emission Truck and Bus Voucher Incentive Project (HVIP) vouchers with additional amounts if the vehicle operates in a disadvantaged community, for example, can provide the majority of the cost difference between a zero-emissions battery electric bus and a gas-powered bus. Utility programs for infrastructure, like Charge Ready Transit (currently underway) and Charge Ready Transport (to launch in Q2 2019) can help pay for all the costs of installing electrical upgrades to bus deports as well as all of the trenching and cable installation to the chargers.   Transit agencies could receive additional relief with a rebate for the chargers of up to 50 percent of the cost of the Electric Vehicle Service Equipment (EVSE). Innovative new utility rate designs such as our recently approved commercial EV rates along with additional revenue from Low Carbon Fuel Standard (LCFS) credits create strong incentives for using electricity as a fuel. BCD Account Management

Charge Ready Transport Program Overview

Charge Ready supports different types of electric vehicles Transit Buses Electric Shuttle Buses Non-revenue vehicles Buses & shuttles Non-revenue vehicles Employee & visitor parking

SCE installs “make-ready” electrical infrastructure at no cost Charging Stations Transformer Service Conduits and Wires Meter Panel Utility Distribution Infrastructure Participant Site Infrastructure This diagram helps paint a picture on what the program covers—primarily the make-ready infrastructure. Everything in the yellow box including the service drop, installation of meter and panel and switchgears and any civil work to install conduits and wires leading up to the concrete pads for you to install the charging stations. Later on Lisa and Simon will talk about what the application and project process will look like but this will obviously involve a few site visits, design work, construction and eventually the installation of charging stations. This is a diagram for standalone charging stations. Charging Stations Program covers costs associated with service drop, meter, panel, and circuit dedicated to EV charging. Make-ready ends at interconnection point with customer charging equipment providing AC service.

Choose from a pre-approved list of chargers and charging speeds to meet your needs AC Charging Up to 17 kW Standard Connector DC Charging Up to 150 kW or more Standard Connector

SCE’s Charge Ready Transport Infrastructure Program Journey 1 Tell us your plans & Apply 2 We work together to secure your Funding Reservation 3 We Secure Permits Pre-Construction Commitments 4 We Design & Build Your Infrastructure – You Install Your Charging Equipment 5 We issue your Rebate 6 We verify your Electric Vehicle Deployments Varies                                         2-3 Months                                        45 Days 6-9 Months                                    1 Month                                      Up to 10 Years

New EV Rates level fueling costs with phased-in demand charges Available now Zero demand charges until 2024 Monthly peak demand can be reduced by building or other “general service” demand at the same site Encouraging off-peak charging: Higher energy rates on-peak (4-9 PM) EV rates available for separately-metered charging installation Calendar Year 2019-2023 2024 2025 2026 2027 2028 2029+ % of Final Demand Charges 0% 16.67% 33.33% 50% 66.7% 83.33% 100%

Additional Programs and Services Transportation Electrification Advisory Services Fleet Analysis Services Rate Intro and Rate Analyses LCFS Credit Estimation GHG Calculations Self Generation Services Review plans for solar and battery storage projects Conduct analysis of feasibility and customer savings Provide a third-party check on vendor claims Transportation Electrification Project Management Support customer-led projects outside of programs Single Point of Contact for multi-site projects

Over 6 million internal combustion engine cars are sold in the US each year. Successfully decarbonizing the transportation sector will require all of us working together. An effort this big and this important will require complimentary efforts from utilities across the country. Not to mention the cooperation of our customers, vehicle manufacturers, legislators, etc.

Join us on this ride. Lisa Arellanes Senior Manager, eMobility Southern California Edison