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This research assesses the integration of different levels of electric vehicles (EVs) in the distribution system and observes its impacts on environmental emissions and power system operational costs. EVs can contribute to reducing the environmental emission from two different aspects. First, by replacing the traditional combustion engine cars with EVs for providing clean and environment friendly transportation and second, by integrating EVs in the distribution system through the V2G program, by providing power to the utility during peak hours and reducing the emission created by hydrocarbon dependent generators. The PG&E 69-bus distribution system (DS) is used to simulate the integration of EVs and to perform energy management to assess the operational costs and emissions. The uncertainty of driving patterns of EVs are considered in this research to get more accurate results.