State Electric Vehicle Legislation
1. Short title.
2. Findings and Purposes.
of the Act are to create financial and regulatory incentives
to promote the purchase or lease of electric vehicles within
the State; to stimulate the development of infrastructure
necessary to support the use of electric vehicles within the
State; to reduce reliance on petroleum-based fuels within
the State; and to improve air quality by increasing the use
of nearly emission free electric vehicles.
3. Statement of Policy.
of States adopting the model legislation is to support the
development and consumer acceptance of electric vehicles,
and the corresponding development of infrastructure to support
the use of these vehicles.
standard definitions of electric vehicle and associated equipment
of an electric vehicle. Defines the term "electric vehicle
infrastructure and support systems" broadly to include support
and maintenance services and facilities, electricity delivery
methods, consumer education programs, and battery availability
and related programs that are necessary for the operation
of electric vehicles.
I. REGULATORY PROVISIONS TO ENCOURAGE THE DEVELOPMENT AND
USE OF ELECTRIC VEHICLES
101. Exemption From Fees.
provides for the issuance of special electric vehicle license
plates, and, as an incentive to the use of electric vehicles
in the State, provides that vehicles bearing such special
license plate shall generally be exempt from the payment of
parking fees, unless such parking fees are dedicated to the
repayment of identified debt obligations. This section would
also exempt electric vehicles from motor vehicle registration
or other fees for a period of ten years.
102. Electric Rate Regulatory Treatment Of Electric Vehicle
Programs In Areas Where Appropriate.
establishes a standard on which to determine whether the costs
of an electric utility's electric vehicle programs may be
recovered through the utility's rates in areas subject to
alternative fuel fleet requirements. The standard provides
that such costs may be added to a utility's rate base if the
appropriate state regulatory authority determines that the
program is "practicable, cost-effective, and beneficial to
requires the state electric utility regulatory authority to
determine whether or not it is appropriate to implement the
"practicable, cost-effective, and beneficial to electric consumers"
standard. A determination that the standard is appropriate
shall be made if the electric vehicle program is likely to
result in more efficient utilization of the utility's existing
generating facilities or is likely to decrease the utility's
air pollution control costs, and if the long-run benefits
to the utility produced therefrom are likely to exceed the
long run costs of the electric vehicle program to the utility.
that regulatory bodies would have under other law to determine
that such a standard is not appropriate is expressly preserved.
Similarly, a savings provision is included to provide that
this section does not limit the authority otherwise available
under state law to provide for recovery of utility electric
vehicle program costs.
of this section, an "electric vehicle program" of a utility
means one through which the utility provides or assists in
providing any one or more of the following: recharging facilities;
equipment or facilities to deliver electricity to the electric
vehicle; other electric vehicle infrastructure and support
systems; or electric vehicles themselves, through direct purchases
or leases of the vehicles or contributions to customer's purchase,
lease or operation costs.
103. Study To Determine Advisability Of Mobile SourceTrading
Of Emission Reductions.
requires the State to study the extent of emission reductions
produced by the operation of electric vehicles, and whether
such reductions may be expressed as "credits" that may be
banked, traded, or used to offset emissions from stationary
sources. The study required by this section shall address
modifications to State Implementation Plans (SIPs) and other
laws or regulations to permit mobile/stationary trading of
emissions credits; the methodology for quantifying emissions
reductions, and the extent to which emissions reductions are
enforceable; the methods to provide for voluntary scrapping
of high-emitting existing motor vehicles, along with the options
for coordinating such a program with programs to encourage
the use of electric vehicles; the methods to monitor pollutant
reductions and to allocate the "ownership" of pollutant reduction
credits; and such other matters as the State agency deems
II. FINANCIAL INCENTIVES PROGRAM TO ENCOURAGE THE USE OF ELECTRIC
201. Electric Vehicle Tax Credit.
would grant a credit against state income tax for a) a percentage
of the amount expended by automobile dealerships or other
vehicle maintenance facilities to purchase and install equipment
to be used specifically for servicing and maintaining electric
vehicles; and b) a percentage of the cost of an electric vehicle
purchased by any taxpayer (individual or corporate). These
provisions would include a phase-down of the credit as production
and utilization of electric vehicles within the State increases,
and a sunset date.
202. Exemption From State Sales And Use Tax.
exempts electric vehicles from any State sales or use taxes.
203. Exemption From Personal Property Taxes. This section
directs that electric vehicles be exempted from any State
or local taxes levied on personal property.
204. Authority To Issue State Bonds To Finance Electric Vehicle
could authorize the issuance by the State of bonds, either
general obligation or special revenue bonds, the proceeds
of which could be utilized to finance designated electric
vehicle programs. The requirements of particular states would
have to be considered in drafting specific legislative language.
In addition, a revenue stream to be used to service the bond
debt/provide for principal repayment would have to be identified
in conjunction with any special revenue issue.
205. Electric Vehicle Loan Guarantee Program.
could authorize the State to create a loan guarantee program,
through which the State would guarantee principal and interest
payments on loans taken out by fleet operators for the acquisition
of electric vehicles or on loans used to acquire capital equipment
necessary to establish electric vehicle support and maintenance
facilities. The costs of this program would be financed through
imposition of a guarantee fee, which would be deposited in
a default reserve. If the default reserve contains less than
10 percent of the total principal value of guaranteed loans
outstanding, no further loan guarantees could be issued.
III. INFRASTRUCTURE DEVELOPMENT AND DATA ACQUISITION PROGRAM
TO SUPPORT THE USE OF ELECTRIC VEHICLES.
301. Development Of Comprehensive State Electric Vehicle Plan.
requires preparation of a comprehensive State electric vehicle
plan in conjunction with local governments, utilities, and
the private sector. State plans are to be consistent to the
extent practicable with any Federal electric vehicle financial
incentive programs, and shall be designed to maximize State
access to Federal programs available for electric vehicle
development and demonstration programs and infrastructure
development projects (such as the new initiatives in this
area enacted as part of the Energy Policy Act of 1992.) Comprehensive
State plans must address, at a minimum, issues of availability
of electricity, the provisions necessary to meet a goal of
introducing a "substantial number" of electric vehicles by
the year 2000, and the specific requirements and cost of implementation
of the plan. Further, State plans must describe the coordination
with Federal and local government entities, and include recommendations
regarding: use of high occupancy vehicle (HOV) lanes by electric
vehicles; State and local tax exemptions; State and local
government fleet electric vehicle use; preferential parking
at public facilities; on-street preferential parking; building
code modifications to accommodate and support electric vehicle
use; public education programs; training programs for O&M,
safety and garaging of EVs, rate treatment of electricity
sold for use in electric vehicles; means through which the
State could facilitate construction and reconstruction of
electricity transmission and distribution facilities; and
provision of public recharging facilities.
302. Selection Of Joint Venture Electric Vehicle Infrastructure
than one year after the appropriation of funds for this purpose,
the State shall select for funding a maximum of five electric
vehicle infrastructure demonstration joint venture projects.
Each joint venture will involve participation by the State
and a non-state entity, which may be a for-profit business
or a nonprofit organization, a private foundation, a trade
or professional society or a local government unit. At least
50 percent of the cost of each joint venture must be provided
from other than State funds. Joint ventures may address: equipping
existing facilities to service electric vehicles and associated
equipment; installation of charging facilities; rate structure
design and other financing methods to encourage electric utilities
to invest in infrastructure capital-related expenditures;
public information programs; and development of safety and
health procedures and guidelines related to operation and
maintenance of electric vehicles.
Vehicle Association of the Americas
701 Pennsylvania Avenue, N.W.
Washington, D.C. 20004