One of the core components of President Joe Biden’s infrastructure bill is adequately preparing the country for the electric vehicle (EV) revolution.

The Biden administration has earmarked $174 billion for transportation electrification, which has sparked a flurry of investment from auto manufacturers.

GM announced they will be opening a $2.3 billion plant in 2023 to manufacture 500,000 EV batteries, Honda has committed to only sell EVs by 2040, Hyundai will invest $7 billion for U.S. EV production, and Ford has announced that half of all Lincolns produced could soon be emissionless.

But unfortunately for consumers in West Virginia, poor policy at the state level is acting as a major hurdle. West Virginia, who currently ranks tied for last in the U.S. Electric Vehicle Accessibility Index, is actively discouraging the purchase of EVs with their ban on direct-to-consumer sales and their disproportionate licensing fee for electric and hybrid vehicles.

Under the guise of consumer protection, West Virginia has made it illegal for electric vehicle manufacturers, like Tesla, to sell directly to consumers. Dealer franchise laws, which ban direct sale, are a decades-old policy implemented to protect consumers from vertical integration and monopolization.

In today’s age of limitless information at your fingertips and healthy competition in the auto industry, this restriction is far past its expiration date. It does nothing but impede consumer choice while providing no consumer protection value.

That’s why many EV manufacturers have opted out of the dealership model entirely. Due to the innovative nature of electric vehicles, a traditional franchised dealership model may not be the most effective way to get these eco-friendly vehicles to market.

Operating a stand-alone dealership increases costs and adds a middle man into the sale process, which can often inflate prices for consumers.

Beyond the ban on direct sales, West Virginia also punishes EV consumers with higher license and registration fees. The standard registration fee for vehicles in West Virginia is $51.50. For consumers making the eco-conscious choice to buy and register an EV, the registration cost is nearly 400% higher at $251.50.

This is incredibly discriminatory, and a much better approach would be to simply treat EVs on par with standard passenger vehicles.

Unfortunately, some legislators have justified the additional fee to help recover lost gas tax revenue, but that runs counter to the purpose of gas taxes. The purpose of the gas tax, currently at 23 cents per gallon in West Virginia, is to encourage consumers to reduce their emissions, which is exactly what EV consumers are doing when they purchase an EV. It’s strange that the reward EV consumers get for their eco-friendly decision is inflated fees exponentially higher than the alternative. It is unfair that these consumers now shoulder more of the financial burden when they are in fact responding to gas taxes as intended by the tax.

On top of being relatively easy to implement, these policy changes have the added benefit of encouraging EV purchases without taxpayer manufacturing subsidies or complicated tax credits, which have rightfully been criticized for favoring the wealthy.

At the end of the day, the EV revolution is well on its way. By simply getting out of the way, legislators in West Virginia could enhance consumer choice, lower costs, protect the environment and do so without all of the logistical issues that come with corporate welfare and boutique tax credits.

As the famous idiom goes, “a rising tide lifts all boats.” The tide is certainly rising for electric vehicles, but with misguided regulations handcuffing consumers, West Virginians may end up watching from the shoreline.

Originally published here.

One of the core components of President Joe Biden’s infrastructure bill is adequately preparing the country for the electric vehicle (EV) revolution. The Biden administration has earmarked $174 billion for transportation electrification, which has sparked a flurry of investment from auto manufacturers.

GM announced they will be opening a $2.3 billion plant in 2023 to manufacture 500,000 EV batteries, Honda has committed to sell only EVs by 2040, Hyundai will invest $7 billion for U.S. EV production, and Ford has announced that half of all Lincolns produced could soon be emissionless. Even here in Nebraska, EV consumers communities like Norfolk and Kearney are building out their charging stations.

But unfortunately for consumers in Nebraska, poor policy at the state level is acting as a major hurdle. Nebraska, who currently ranks tied for last in the U.S. Electric Vehicle Accessibility Index, is actively discouraging the purchase of EVs with their ban on direct-to-consumer sales, and their disproportionate licensing fee for electric and hybrid vehicles.

Under the guise of consumer protection, Nebraska has made it illegal for electric vehicle manufacturers, like Tesla, to sell directly to consumers. Dealer franchise laws, which ban direct sale, are a decades-old policy implemented to protect consumers from vertical integration and monopolization. In today’s age of limitless information at your fingertips, and healthy competition in the auto industry, this restriction is far past its expiration date. It does nothing but impede consumer choice while providing no consumer protection value. That’s why many EV manufacturers have opted out of the dealership model entirely. And, we know from the success of direct-to-consumer platforms in the used car market (where direct sale is legal) that online purchasing is on the rise.

Beyond the ban on direct-sales, Nebraska also punishes EV consumers with higher license and registration fees. The standard registration fee for vehicles in Nebraska is between $15. For consumers making the eco-conscious choice to buy and register an EV, the registration cost is over 500% higher, at $75. This is incredibly discriminatory, and a much better approach would be to simply treat EVs on par with standard passenger vehicles.

Unfortunately, some legislators have justified the additional fee to help recover lost gas tax revenue, but that runs counter to the purpose of gas taxes. The purpose of the gas tax, currently at 28.7 cents per gallon in Nebraska, is to encourage consumers to reduce their emissions, which is exactly what EV consumers are doing when they purchase an EV. It’s strange that the reward EV consumers get for their eco-friendly decision is inflated fees exponentially higher than the alternative. It is unfair that these consumers now shoulder more of the financial burden when they are, in fact, responding to gas taxes as intended by the tax.

On top of being relatively easy to implement, these policy changes have the added benefit of encouraging EV purchases without taxpayer manufacturing subsidies, or complicated tax credits, which have rightfully been criticized for favoring the wealthy.

At the end of the day the EV revolution is well on its way. By simply getting out of the way, legislators in Nebraska could enhance consumer choice, lower costs, protect the environment, and do so without all of the logistical issues that come with corporate welfare and boutique tax credits.

As the famous idiom goes, “a rising tide lifts all boats.” The tide is certainly rising for electric vehicles, but with misguided regulations handcuffing consumers, Nebraskans may end up watching from the shore line.

Originally published here.

One of the core components of President Joe Biden’s infrastructure bill is adequately preparing the country for the electric vehicle (EV) revolution. The Biden Administration has earmarked $174 billion for transportation electrification, which has sparked a flurry of investment from auto manufacturers.

GM announced they will open a $2.3 billion plant in 2023 to manufacture 500,000 EV batteries, Honda has committed to only sell EVs by 2040, Hyundai will invest $7 billion for US EV production, and Ford has announced that half of all Lincoln vehicles produced could soon be emissionless. Even here in Alabama, Mercedes has committed to hiring an additional 400 workers at its Tuscaloosa County plant to keep pace with the demand for EVs

But unfortunately for consumers in Alabama, poor policy at the state level is acting as a major hurdle for the EV boom. Alabama, which currently ranks tied for last in the US Electric Vehicle Accessibility Index, is actively discouraging the purchase of EVs with their ban on direct-to-consumer sales, and their disproportionate licensing fee for electric and hybrid vehicles.

Under the guise of consumer protection, Alabama has made it illegal for electric vehicle manufacturers, like Tesla, to sell directly to consumers. Dealer franchise laws, which ban direct sales, are a decades-old policy implemented to protect consumers from vertical integration and monopolization. In today’s age of limitless information at your fingertips, and healthy competition in the auto industry, this restriction is far past its expiration date. It does nothing but impede consumer choice while providing no consumer protection value.

That’s why many EV manufacturers have opted out of the dealership model entirely. Due to the innovative nature of electric vehicles, a traditional franchised dealership model may not be the most effective way to get these eco-friendly vehicles to market. Operating a stand-alone dealership increases costs, and adds a middle-man to the sale process, which can often inflate prices for consumers. And, we know from the success of direct-to-consumer platforms in the used car market (where direct sale is legal), that online purchasing is on the rise.

Beyond the ban on direct-sales, Alabama also punishes EV consumers with higher license and registration fees. The standard registration fee for vehicles in Alabama is $65. For consumers making the eco-conscious choice to buy and register an EV, the registration cost is over 300% higher at $265. This is incredibly discriminatory, and a much better approach would be to simply treat EVs on par with standard gas-powered vehicles.

Unfortunately, some legislators have justified the additional fee to help recover lost gas tax revenue, but that runs counter to the purpose of gas taxes. The purpose of the gas tax, currently at 26 cents per gallon in Alabama, is to encourage consumers to reduce their emissions, which is exactly what EV consumers are doing when they purchase an EV. It’s strange that the reward EV consumers get for their eco-friendly decision is inflated fees exponentially higher than the alternative. It is unfair that these consumers now shoulder more of the financial burden when they are in fact responding to gas taxes as intended.

On top of being relatively easy to implement, these policy changes have the added benefit of encouraging EV purchases without taxpayer manufacturing subsidies, or complicated tax credits, which have rightfully been criticized for favoring the wealthy.

At the end of the day, the EV revolution is well on its way. By simply getting out of the way, legislators in Alabama could enhance consumer choice, lower costs, protect the environment, and do so without all of the logistical and ideological issues that come with corporate welfare and boutique tax credits.

As the famous idiom goes, “a rising tide lifts all boats”. The tide is certainly rising for electric vehicles, but with misguided regulations handcuffing consumers, Alabamians may end up watching from the shores.

Originally published here.

Some states want to help push electric vehicle adoption. Others don’t. They make it harder and more expensive to drive an EV than not. These are the states that if you’re living in them it is best not to buy an EV. At least not now.

What are states doing that makes them bad?

Banning direct-to-customer sales, extra registration fees, and higher road charges are all ways that some states make it hard to buy an EV. If you’re thinking that this breaks down into red states discouraging EV sales and blue states pushing it, you would be wrong. All 50 states have been graded for their ease or difficulty in making an EV purchase.

The Consumer Choice Center does the rating. And in a surprise finding the 10 states listed as the toughest to purchase an EV through are Alabama, Arkansas, Iowa, Kansas, Nebraska, North Dakota, South Carolina, West Virginia, and Wisconsin. In these states, you can’t make a direct vehicle sale, and it is more expensive registering an EV.  

Of the 50 states, 28 will charge you more to register an EV. Tesla sales have been banned in 17 states because their Franchise Tax laws don’t allow direct sales. And 12 more states have electric vehicle restrictions on sales through some direct-to-buyer laws. Some of these states restrict direct sales but don’t charge a higher fee to register an EV. Others, like Michigan, allow only Tesla to bypass Franchise Tax laws and sell direct. 

“Better policies will reduce significant barriers preventing consumers from fully accessing EVs”

“It is clear that consumers want more access to electric vehicles,” CCC’s North American affairs manager David Clement to arstechnica. “Therefore legislation should make the purchase and ownership of them as convenient as possible. And we urge legislators to put forth better policies that will reduce the significant barriers currently preventing consumers from fully accessing EVs.”

Conversely, these are the top 10 states that don’t have electric vehicle restrictions or higher registration fees when purchasing an EV. They are Alaska, Arizona, Delaware, Florida, Maine, Massachusetts, Missouri, New Hampshire, Rhode Island, and Vermont. California is not included on this list for a reason.

California is not on the “Best States” list-how come?

Because California now has its licensing fees for EVs based on the consumer price index, they are gradually increasing. Currently, they’re at $100. Gas taxes are used by the state for road improvements and other travel-related costs. Since EVs don’t use gasoline this licensing fee arrangement makes sure California gets EVs to chip in. 

Almost half of all EVs in the US are registered in California. It has the highest adoption rate and also has more charging stations than any other state. Nonetheless, the CCC doesn’t consider it one of the Top 10 friendlier because of its licensing fee arrangement. 

With car companies slated to stop building gas-powered vehicles over the next 10 years, some states will have to adapt fairly soon. While they may continue charging higher fees for EVs, they will also have to increase charging stations. Direct to buyer restrictions won’t be as much of a factor with all car companies now rolling out EVs at a steady pace. 

Originally published here.