S.18.4-28: Electric Car Chargers on Parking Lots Act - Vetoed

[tmthforu94]

Is there any data on how much it costs to set these up and maintain?

[tmthforu94]

Objection.

Do we have any projections/data on how many cars will be electric in the coming decades? This is a hefty financial burden that we are passing on to businesses as well as taxpayer spending for government buildings, I’d like to ensure it’s importance before passing this expense on to the taxpayer/consumer.

[tmthforu94]

Thank you Chamber for delaying a vote. Sorry for the wait, I was with family for the Christmas holiday and was much busier with RL activities than anticipated.

First, I want to thank Delegate Tack50 for writing this bill and introducing it. While we have passed a lot of legislation in 2018, most of it has come from a couple experienced players, so I'm glad to see new folks taking initiative and hope to see more great things from you!

Regarding the bill specifics, as noted above, I have concern about the financial implications this will have on both the public and private sector, and I'll elaborate. Electric cars accounted 1.13% of the total automobile market share in 2017. Considering the current demographics of those able to purchase an electric car and the total percentage of Americans who own a car, the % of Americans solely relying on an electric vehicle is likely significantly fewer. While I understand the desire to think long-term, Bloomberg is projecting 30% of cars will be electric in 2030, which is near the current timeframe for this.

I think market demand over time will work itself out, I could see supporting a bill like this in 10 years once we know that electric cars are becoming more prevalent. I currently don't see this as something the government should be mandating. As it stands I don't see the demand as being high, the only place in the country where I could see this going over well is California, so maybe it is something Fremont could consider. There is going to be a high cost of setting up and upkeep for a product that isn't going to be reaping benefits for probably a decade, at least. An alternative I would suggest is providing tax incentives to businesses that provide these charging ports.

[tmthforu94]

The amendment is an improvement, I'm still not sure requiring a mandate on a product that is unproven is the best way to go. My preference would be just having this as a tax credit. If the legislature supports the mandate route, I'd ask that at least be pushed out to 5 years+. If you perform construction on a parking lot in 6 months that require this, odds are that by the time electric cars get to the point of relevancy, you'll have to do another construction project!

[tmthforu94]

The amendment is an improvement, I'm still not sure requiring a mandate on a product that is unproven is the best way to go. My preference would be just having this as a tax credit. If the legislature supports the mandate route, I'd ask that at least be pushed out to 5 years+. If you perform construction on a parking lot in 6 months that require this, odds are that by the time electric cars get to the point of relevancy, you'll have to do another construction project!

You mean having the law not apply until 5 years from now? That seems fine I guess (if a bit on the long side). I do think the mandate is better than just a tax credit, especially since the cost will be (partly) subsidized and I don't view a 3% mandate for something with a 1% market share (and growing, hopefully) as too large of a burden. Plus as a mandate it ensures future drivers that there will be a charger wherever they go (as opposed to that being just getting lucky)

I'm just not seeing enough long-term, solid evidence indicating that electric cars will be a sizable share of the market force in the next 20-30 years. If the need arises, I believe that the market will respond on it's own without mandates.

[tmthforu94]

I am considering action on this bill and will make a decision soon.

[tmthforu94]

VETO

Explanation
I can't get behind the mandate portion of this bill. I was looking to rewrite this as only a tax credit but I also see a lot of potential loopholes (with or without mandate) here that businesses would seek to take advantage of. I am struggling with coming up with a rewrite that fully encompasses this. I would still like to take a look at promoting car chargers, whether it be within this session or as an item for next session.

[tmthforu94]

Right, I need to figure out how the wording can be tightened to prevent businesses from trying to abuse this to gain tax credits.