NewEnergyNews: Monday Study – The Policy Fight For Transportation Electrification

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    Monday, May 24, 2021

    Monday Study – The Policy Fight For Transportation Electrification

    Monday Study – The 50 States of Electric Vehicles: Q1 2021

    May 2021 (North Carolina Clean Energy Technology Center)

    Executive Summary

    Q1 2021 ELECTRIC VEHICLE ACTION

    In Q1 2021, 48 states plus DC took a total of 519 actions related to electric vehicles. Table 1 provides a summary of state and utility actions occurring during Q1 2021. Of the 521 actions catalogued, the most common were related to Regulation (133), followed by Financial Incentives (125), and Market Development (101).

    TOP ELECTRIC VEHICLE ACTIONS OF Q1 2021

    Five of the quarter’s most notable electric vehicle actions are noted below.

    New Jersey Regulators Approve Utility Electric Vehicle Programs

    The New Jersey Board of Public Utilities approved electric vehicle programs proposed by Atlantic City Electric and PSE&G New Jersey during Q1 2021. Atlantic City Electric’s program has a total budget of $20.673 million, and PSE&G’s program has a budget of $166.2 million. Both programs include make-ready incentives for different customer types and demand charge alternatives for fast charging stations.

    Virginia Lawmakers Approve Electric Vehicle Rebate and Grant Programs

    Virginia lawmakers enacted two bills in March 2021, establishing an electric vehicle rebate program and an electric vehicle grant program. The rebate program will begin in 2022 and provide rebates of at least $2,500 for the purchase of electric vehicles. Income-qualified residents will be eligible for an additional $2,000 rebate. The grant program will award grants on a competitive basis to school boards and non-profits to assist with the replacement of diesel school buses and vehicles with electric buses and vehicles.

    Colorado Public Utilities Commission Approves Modified Transportation Electrification Plan for Xcel Energy

    The Colorado Public Utilities Commission issued a decision in January 2021 approving Xcel Energy’s proposed transportation electrification plan with modifications. The decision approves an electric vehicle rebate program for low-income customers, residential home wiring rebates, a school bus electrification program, the development of utility-owned fast charging stations in underserved areas, utility deployment of charging stations for multi-family housing, and commercial charging rates, among other elements.

    Oklahoma State Legislature Adopts Tax on Electric Vehicle Charging

    The Oklahoma Legislature enacted a bill adopting a tax of $0.03 per kWh on the sale of electricity used to charge electric and hybrid vehicles. Collection of this tax will begin in 2024 and will not apply to charging stations in service before November 2021, those with less than 50 kW of capacity, or those that supply electricity free of charge, including private residential stations. The bill also adopts a registration fee for electric vehicles and provides a tax credit for the amount of charging taxes paid, up to the registration fee amount.

    Kansas and North Dakota Legislators Exempt Charging Stations from Public Utility Regulation

    State legislators in both Kansas and North Dakota recently enacted bills allowing electric vehicle charging stations to resell electricity to the public without being classified as a public utility. Both bills specify that the electricity used for vehicle charging must be purchased from a retail electric supplier to avoid classification as a public utility.

    TOP ELECTRIC VEHICLE POLICY TRENDS OF Q1 2021

    Utilities Requesting Approval for New Electric Vehicle Program Portfolios

    Several utilities filed new proposals in Q1 2021 to implement electric vehicle program portfolios. Utilities are continuing to take individualized or state-specific approaches to their transportation electrification programs. In Kansas and Missouri, Evergy requested approval for transportation electrification portfolios including charging station rebates and new rates designed for business and transit charging. Jersey Central Power & Light filed its EV Drive Program proposal, which includes make-ready incentives, off-peak usage credits, and utility deployment of fast chargers. Indianapolis Power & Light filed a petition for an electric vehicle portfolio involving a managed charging program and off-peak charging incentive. In Washington, Avista Utilities filed an application for a series of programs including utility deployment of residential and commercial charging stations, DC fast charger deployment, and new commercial charging rates.

    State Lawmakers Considering Road Usage Fees and Electricity Taxes

    State lawmakers across the country have been considering new types of fees applicable to electric vehicles during the 2021 legislative session – primarily road usage fees based on miles traveled and taxes on electricity used for vehicle charging. Oklahoma legislators recently enacted a bill establishing a $0.03 per kWh tax on the sale of electricity used to charge electric or hybrid vehicles at public charging stations beginning operation after November 2021. State legislators in Georgia, Minnesota, and Nevada also considered taxes on electricity used for vehicle charging, while lawmakers in California, Minnesota, Missouri, and Washington introduced bills adopting road usage fees for electric vehicles. In Montana, legislation under consideration would adopt a trip-based fee for electric motortrucks and truck tractors licensed in another state. Numerous states continue to consider registration fees for electric vehicles as well, with Oklahoma and South Dakota recently adopting new fees.

    Policymakers Addressing Government Procurement of Electric Vehicles

    While the federal government recently announced plans to transition the federal fleet to electric vehicles, many state policymakers have also been considering electric or zero-emission vehicle procurement targets for state fleets. Legislation passed by the Hawaii House and Senate requires that 100% of light-duty state fleet vehicles are zero-emission vehicles by the end of 2030. In Maryland, lawmakers passed a bill requiring that new bus purchase contracts are for zero-emission buses. The New Hampshire Senate has passed a bill setting a goal of having all of the state’s motor vehicles be zero-emission vehicles by 2042. Legislators in many other states, including Connecticut, Illinois, Massachusetts, Minnesota, and New York are also considering bills establishing electric vehicle procurement targets, and some states are contemplating targets for electric vehicle adoption in the private market.

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