Top 25 States Supporting the EV Driver

February 2021

ACKNOWLEDGEMENTS

This report was authored by the Plug In America policy team, including Katherine Stainken, Peter O’Connor, and Russell Corbin. Additional thanks go to the Plug In America Policy Committee, in particular Jay Friedland, Dean Taylor, and Joel Levin.

A special thanks to our reviewers, which include Nicole Lepre at Atlas Public Policy, Sue Gander at the Electriﬁcation Coalition, Barry Woods at ReVision Energy, and Brianna Fiorillo at Drive Electric NH.

EXECUTIVE SUMMARY

The future of transportation is electric. Not only do electric vehicles (EVs) and the switch to a fully electriﬁed transportation sector beneﬁt consumers, but electric technology can help states meet a variety of economic, environmental and public health goals. With 2021 set to be a breakthrough year with dozens of new makes and models of EVs set to come out, the EV market is growing from the “early adopter” phase to the start of the “mass market” adoption phase, bringing in a whole class of new consumers that have never before driven electric. As the market undergoes this transition, supportive policy measures are needed not just for these new consumers, but also for current drivers of EVs.

The transportation electriﬁcation market is accelerating at a rapid pace, and the next few years will be crucial to support EV drivers by getting EV policy right. Should the U.S. adopt a target of putting a plug on every car by the end of the decade, action at the federal level will not be enough: we will need bold state leadership and policy measures for such a target to become a reality.

The report identiﬁes the following as the top 10 states: California, Massachusetts, Oregon, New Jersey, Colorado, New York, Vermont, Connecticut, Maine, and Washington. These states are all leading the way in terms of EV policies that support the EV driver today and can serve as examples for other states as well. We anticipate Nevada, New Mexico, Virginia and Minnesota to make signiﬁcant progress in adoption of supportive EV policy this year, which may move them into our top 10 states ranking in 2022.

INTRODUCTION

The future of transportation is electric. Not only do electric vehicles (EVs) and the switch to a fully electrified transportation sector benefit consumers, but electric technology also holds significant benefits for states. While transportation electrification gives consumers significant savings on fuel and maintenance costs, transportation electrification presents states with the chance to attract new investment in the technology and innovation sectors for EV manufacturing, materials, engine design and battery design, and can create more jobs in the state for electricians and construction workers who install the EV charging stations. Moreover, since EVs have zero tailpipe pollution, these clean cars help states achieve healthier air for their citizens, leading to fewer missed work days for those who have air-related health problems, like asthma, and can also help states to achieve air quality attainment targets as established by the federal government. EVs also help states achieve any climate or carbon reduction goals, and they reduce our dependence on oil and the related national and energy security risks. Finally, the money that consumers save with their EVs can be invested right back into local economies.

With new makes and models set to come out in 2021, the EV market is growing from the “early adopter” phase to the start of the “mass market” adoption phase, bringing in a whole class of new consumers that have never driven electric before. As the market undergoes this transition, supportive policy measures are needed not just for these new consumers, but also for current drivers of EVs. While many policymakers may look to the new Congress and new Administration at the federal level to lead the way on EV policy, policymakers at the state level have a critical role to play as well.

This report determines the top 25 states that are leading the way with supportive policy measures in four categories: for the EV driver pre-purchase, for the EV driver during ownership of the vehicle, policies that are enabling EV infrastructure build-out, and education and outreach activities. For each of the top 25 states, the report examines the policies and activities that are currently enacted and implemented at the state level, and state level only—not at the city level or local government level. Of course, cities and local governments, along with utilities, have their role to play in supporting the EV driver in these four categories with policy measures and programs. The report also does not include policies that have expired or funding that has lapsed, nor does the report include policies for the medium- or heavy-duty vehicle sector. Instead, the report is intended to

give a snapshot of the current landscape within a state for supporting the light-duty EV driver today.

We hope that the report will encourage and push those states which were not as highly ranked to continue to adopt supportive policies, and encourage those states which ranked high to maintain their supportive policies and ensure that these policies continue to work for more EV drivers in the future. States that are not ranked can look to the states that are leading the way and begin to adopt and implement policies that will prepare the state for a successful transition to an electrified transportation sector. These states that are not ranked can utilize the AchiEVe: Transition to EVs Model Policy Toolkit for policy ideas and legislative text that can be modified to fit each state.

The transportation electriﬁcation market is accelerating at a rapid pace, and the next few years will be crucial for getting EV policy right to support EV drivers. Should a target of putting a plug on every car by the end of the decade be adopted at the federal level, it is through bold state leadership and policy measures that this target will become a reality.

METRICS AND CATEGORIES

There are multiple ways to determine how the policies in a state support the EV driver. Simply counting up the number of supportive EV policies that a state has could provide a misleading impression, as some policy measures support EV adoption more than others. However, this is not to say that certain policies are not needed or are ineﬀective. Our analysis required some assessment of the quality and impact of the various EV policy measures. For example, a larger rebate for EVs is likely to do more to support the EV driver pre-purchase and grow adoption than a smaller rebate. We address these policy variations through a scoring system, assigning points to each state in several categories of EV-supportive policies. This necessarily requires some judgment calls and assumptions about the relative value of diﬀerent types of policies. Each policy has a point score associated with it, with 100 total points available; receiving the maximum possible score on each policy would give a state a score of 100. In the description of each policy, we list some states that scored highly on that policy; these lists are not exhaustive. See Table on page 10 for the complete scores.

Furthermore, we have only scored the policies that are currently enacted and implemented in a state, and only policies that have been adopted at the state level, not at the city or local level.

The policies are grouped into four categories: policies supporting the EV purchase, policies supporting the EV driver during ownership, policies enabling EV infrastructure, and education and outreach activities within a state.

POLICIES SUPPORTING THE EV PURCHASE

The policies that support an EV purchase include an EV purchase incentive, access to EVs, and HOV lane access or toll exemption.

EV PURCHASE INCENTIVE Rebates, tax credits, sales tax exemptions, or other incentives are among the most common and most eﬀective measures to increase EV adoption and to support the EV driver pre-purchase. As EVs reach price parity with their gas counterparts, incentives oﬀer a relatively small amount of money to encourage a much larger investment of private capital (on the part of the EV buyer), which increases demand and, thereby, also supports manufacturers in scaling up production, driving innovation, creating economies of scale, and reducing the costs of future EVs. Purchase incentives for EVs should not be viewed as a perk or a privilege, but rather an investment in a public good. Therefore, we allocated 15 points (out of 100) to EV purchase incentives.

The amount of the rebate matters. We regard $1,500 as the minimum necessary to make a significant impact on a purchasing decision, and award 10 points for a rebate of that level or above, 11 points for $2,000 or above, and 12 points for $2,500 or above. We awarded 1 point for incentives available at the point of sale, finding that such measures tend to be more effective at spurring EV adoption and supporting the EV driver.

Some states have sought to limit the maximum manufacturers’ suggested retail price (MSRP) that is eligible for a purchase incentive. MSRP caps can be valuable on the consumer side by encouraging adoption of lower priced EVs among a group of consumers choosing between an EV and a gas car, versus providing a purchase incentive to those consumers who were going to purchase their EV regardless of the price. However, an overly aggressive MSRP cap can have the unfortunate eﬀect of encouraging shorter-range EVs, which require a considerably greater degree of public charging infrastructure. In addition, an MSRP cap that is too low may require manufacturers to sell some of their newer models at a loss, particularly in more expensive yet popular segments such as pickup trucks and sport utility vehicles. We awarded 1 point if the MSRP cap was set at $50,000 or above.

States also received 1 point for having a supplemental or increased incentive for low- and moderate-income EV drivers.

Some states with particularly notable EV rebates include Colorado, Maine, and New Jersey.

ACCESS TO EVS Of course, rebates do not help the EV driver pre-purchase if dealerships do not have the EVs in stock. The two most eﬀective policies at ensuring EV availability for buyers are implementation of the Zero Emission Vehicle (ZEV) program as part of the Advanced Clean Cars program (following California’s example as allowed under Section 177 of the Clean Air Act), and allowing direct sales of

EVs by EV-only manufacturers, such as through a showroom versus a traditional franchised dealer network. The ZEV program requires an automaker who wants to sell cars in a state (any kind of car) to either make available for purchase a certain number of EVs in that state, or to purchase a certain number of credits. The program essentially provides more makes and models of EVs available for purchase in that state.

We awarded 15 points in total for making EVs available to buyers, with 10 points for states adopting the ZEV program goals and 5 points for allowing direct sales of EVs. States that received the full 15 points include: California, Oregon and New Jersey.

HOV LANE ACCESS OR TOLL EXCEPTION Some states with high-occupancy vehicle (HOV) lanes allow EVs to use these lanes regardless of the number of passengers, typically with a special plate or decal. Such incentives were influential in increasing adoption of hybrid vehicles in the past, and are effective for encouraging EV adoption. We assigned 3 points for states that offer such an incentive.

Other states allow EVs to pay reduced tolls. We assigned 2 points for this type of incentive, though similar to HOV lanes, some states do not have toll roads. New York allows EVs in some HOV lanes, and also oﬀers reduced tolls for EVs on some highways. POLICIES SUPPORTING THE EV DRIVER DURING OWNERSHIP

The policies that support the EV driver during ownership include a fair EV fee, a clean fuels policy, open access requirements for public electric vehicle supply equipment (EVSE, or the charging stations), and policies that support the physical access to the EVSE.

FAIR EV FEE Full battery electric vehicles (BEVs) do not pay gasoline taxes, while plug-in hybrid EVs (PHEVs) do. EV drivers also pay taxes on the electricity used to charge the vehicles, and also typically pay higher sales and excise taxes to the state than non-EV drivers do. Despite these facts, many states have sought to increase registration fees on EVs to recoup the lost gas tax revenue, even though lost gas tax revenue is mostly due to the fact that all gas vehicles have become more efficient over time and that the gas tax has not been indexed to inflation. Plug In America believes that such punitive fees placed on EV drivers are not appropriate at this nascent stage of the EV market, and would be better applied once EVs reach 15% of new vehicle sales in a state. Furthermore, any fees should not be greater than the gasoline taxes a driver of a fuel-efficient new vehicle of a similar class would pay—this is the “maximum justifiable fee”. As EV adoption grows, Plug In America also supports a vehicle-miles travelled (VMT) program, often referred to as a road-usage charge. A VMT program can be optimized to reward drivers of clean vehicles like EVs.

We assigned 9 total points for this category. States that had a ratio of the existing EV fee compared to the maximum justiﬁable fee of less than 1 received the full 9 points—meaning that the current EV

fee is not considered punitive. We utilized the Appendix B of the Consumer Reports 2019 report on EV fees for data.

Many states received the full 9 points here, such as New Hampshire, New Mexico, and Oregon.

CLEAN FUELS POLICY Some states have sought to address transportation carbon emissions through the development of a low carbon fuel standard (LCFS) or a clean fuels policy, while others are developing cap-and-invest programs (and some states may do both). We awarded up to 7 points for the use of such measures, such as in California and Oregon. Clean fuels policies that use market-based mechanisms can generate long-term sustainable funding sources that can be used to build additional charging infrastructure, or can be used towards education and outreach activities, or can be provided back to the EV driver in the form of a rebate or credit. These funds can also be speciﬁcally dedicated to advancing equity concerns in transportation electriﬁcation. The cap side of such a policy results in the price of gasoline including at least a portion of the cost of the climate damages from that fuel, thereby making electricity more fairly competitive as a fuel solution. Thus, it is included in the policy category of supporting the EV driver during ownership. Although the Transportation and Climate Initiative1 has not yet implemented a cap-and-invest program, we awarded 3 points to states that have signed the Memorandum of Understanding to establish that program.

PUBLIC EVSE REQUIREMENTS A number of states have passed legislation or regulations to ensure that public EV charging stations are truly accessible by the public. The most prominent legislation here is California’s Senate Bill 454 (2013-2014). Some such policies apply to publicly-funded charging stations, while others apply to all public charging stations regardless of funding source. Most commonly, these policies seek to ensure that drivers need not be a subscriber or member of any network to access an EV charging station, and seek to ensure that there is a minimum standard for payment, such as a credit card reader. We awarded up to 4 points for such legislation or regulation.

PHYSICAL EVSE ACCESS A common concern reported by EV drivers is charging stations being blocked by internal combustion engine vehicles (or, “ICEing”). Some states have passed legislation to prohibit this practice. We awarded 3 points for such legislation. Note that the enforcement of such laws is generally up to localities, but this report does not delve into local diﬀerences. States that have passed such laws include Arizona, Florida, Hawaii, and more.

1 A multi-state agreement to reduce greenhouse gas emissions from transportation. See https://www.transportationandclimate.org/.

POLICIES ENABLING EV INFRASTRUCTURE

The policies in this category that enable the build-out of publicly accessible EV infrastructure include public utility commission activity (including if the Commission held an EV or transportation electrification (TE) workshop, if there is an open EV/TE docket, if there is a TE directive and/or legislation to investor owned utilities in that state or the Commission), financial incentives that encourage EVSE installation, non-financial policies that enable EVSE installation, ease of permitting and Homeowner Association (HOA) policies that enable EV charging.

PUBLIC UTILITY COMMISSION ACTIVITY Utilities are a necessary partner in transportation electrification. Some states have passed legislation explicitly allowing or even requiring utilities to make investments that serve to accelerate EV adoption. Other states have legislation that, while not as specific, also enable state utility commissions to approve utility proposals to invest in charging infrastructure (such as through “make-ready” efforts of the charging stations). We allocated up to 10 points for such legislation or directives, or for utility commission proceedings and workshops encouraging utility investment in the transportation electrification sector.

Vermont has one of the most innovative laws, requiring utilities to invest in reducing emissions from non-electricity end uses such as transportation and home heating. Colorado also has model policy under this category (SB 19-077), and California under SB 350 has led the way with approving utility investment in the TE sector.

FINANCIAL INCENTIVE ENABLING EVSE INSTALLATION Many states have taken steps to accelerate EVSE installation through financial policies and programs such as rebates, tax credits, or grant programs. EVSE incentives may be specific to certain applications, such as workplace charging (often level 2), corridor charging (typically DC fast charging), or solutions for multi-family housing such as apartments and condominiums. We assigned 10 points in total for these types of measures. Note that many states developed temporary grant programs to fund EVSE through the Volkswagen Settlement. We included such programs in the listing if the program is still ongoing. Colorado has a robust program offering rebates for level 2 stations and for DCFC stations, as does New Jersey.

NON-FINANCIAL POLICIES ENABLING EVSE INSTALLATION In addition to ﬁnancial incentives, many states have other measures to facilitate installation of EVSE. Examples of such measures might include state strategic plans for corridor charging, or regulations to allow EVSE installation along the right-of-way or on streetlight poles (for curbside charging). We awarded three points for such non-ﬁnancial measures to accelerate EVSE installation.

EASE OF PERMITTING Although permitting EVSE installations depends on both state and local policies, EVSE installers do note some general trends. We scored states here on a scale of 1 to 3, based on conversations with EVSE installers about the ease of permitting. Oregon’s “minor label” program is held up as an example of a successful program to expedite EVSE installation.

HOA POLICY Homeowners’ associations in some cases have restricted EV ownership by restricting the ability of homeowners to install charging systems. Numerous states have addressed this through legislation, stipulating that homeowners associations may neither prohibit nor place undue burdens on homeowners seeking to install EVSE. We awarded 1 point for such legislation. EDUCATION AND OUTREACH ACTIVITIES

Education and outreach to consumers and additional stakeholders is absolutely critical, and more attention must be given to these activities. The two policies under this category include a statewide education and outreach campaign, and programs to train dealers to sell EVs.

STATEWIDE CAMPAIGN States are critical partners in the adoption of EVs and the growth of this market. In addition to utilities, automakers, dealers, and other non-proﬁt stakeholder groups, states are needed to demonstrate leadership and bring these stakeholders together to create comprehensive education and outreach campaigns to consumers, ﬂeet owners and operators, businesses, and more. Points were awarded in this category based on the scope, scale, funding assigned to education and outreach activities, and overall leadership activity with EV adoption, with a maximum of 9 points achievable.

Setting the bar high is California, which received the full 9 points, as well as Oregon.

PROGRAMS TO TRAIN DEALERS TO SELL EVS One of the barriers to greater EV adoption is the EV driver experience at the dealership. The dealer business model favors the approach that time is money. A quick sell is preferred, as dealers are mainly paid based on commission. Therefore, many dealers are not keen on selling EVs as this requires time to explain how to charge, where to charge, answer battery questions, and answer other relevant questions. This barrier must be overcome to experience greater EV adoption. Some states have taken proactive steps and have implemented programs to train and educate their dealers. Points were awarded in this category if there are programs and partnerships in place to train the dealers in the state, with a maximum of 6 points achievable.

TABLE OF CATEGORIES

Total Points Points Category Subcategories Earned Possible EV purchase incentive 15 Policies Supporting Access to EVs 15 EV Purchase HOV lane access/toll exemption 5 Subtotal 35 Fair EV fee 9 Policies Supporting EV Clean fuels policy 7 Driver During Public EVSE requirements 4 Ownership Physical EVSE access 3 Subtotal 23 Public Utility Commission activity 10 Financial incentive enabling EVSE installation 10 Policies Enabling EV Non-ﬁnancial policies enabling EVSE Infrastructure installation 3 Ease of permitting 3 HOA policy 1 Subtotal 27 Statewide campaign 9 Education and Programs to train dealers to sell EVs 6 Outreach Activities Subtotal 15 GRAND TOTAL 100

STATE RANKINGS Overall Ranking

Rank State Points Received

1 California 95

2 Massachusetts 86

3 Oregon 85

4 New Jersey 82

5 Colorado 78

6 New York 77

7 Vermont 70

8 Connecticut 66

9 Maine 65

10 Washington 64

11 Rhode Island 61

12 Maryland 56

13 Delaware 51

14 Hawaii 49

15 New Hampshire 45

16 Utah 44

17 Florida 42

18 Pennsylvania 41

19 Minnesota 40

20 Virginia 37

21 New Mexico 34

22 North Carolina 32

23 Michigan 31

24 Arizona 30

25 Nevada 28

#1: CALIFORNIA

California leads the way in all areas of policy supporting the EV driver, receiving near perfect scores in each category. Of note are the policies that support the EV driver during ownership. The clean fuels policy (low carbon fuel standard) in California provides a credit back to the drivers of the vehicles on an annual basis, and the public EVSE requirements under the EV Charging Stations Open Access Act are the most comprehensive in the country, as they also require a minimum payment standard that works for low-income customers too. California did not receive the full 3 points for ease of permitting; however, it should be noted that California has taken signiﬁcant steps to remedy this, with the EV Charging Station Permitting Guidebook, and the “ZEV Permitting Olympics.” We expect California to receive the full 3 points in this category this year.

#2: MASSACHUSETTS

Massachusetts has numerous policies supportive of the EV driver, from a substantial rebate to infrastructure funding. The state is a zero emission vehicle (ZEV) state, and a leader in the Transportation and Climate Initiative (TCI). The state supports multiple EV education and outreach programs such as Drive Change Drive Electric and MassEVolves. The state’s Global Warming Solutions Act provides the basis for utility commission approval of utility investments in EV deployment. Massachusetts has also supported Plug In America in providing our PlugStar training and certiﬁcation to dealerships across the state.

#3: OREGON

Oregon is without a doubt a leader in policy for EV drivers. Of note in Oregon is their rebate that offers low-income residents $2,500 off the purchase or lease of a used BEV and $5,00 off the purchase or lease of a new BEV. In conversations with EV installers, Oregon’s “minor label” program was noted as an example of a successful program to expedite EVSE installation, thus Oregon received a bonus point for this ease of permitting. Under the dealer training category, Oregon has a unique program to design and establish a “Governor’s Award” for dealerships to encourage sales of EVs. The state also leads a number of education and outreach initiatives, including the state agencies leading a collaborative effort to develop goals and metrics for progress with the state’s EV goals, a strategic effort to engage with the state’s public-owned utilities to enable increased EV adoption and provide technical assistance, and many more efforts as well.

#4: NEW JERSEY

New Jersey had numerous policies supportive of the EV driver prior to January 2020, but with the passage of Senate Bill 2252, the state jumped to the head of the class. New Jersey now provides both a rebate and a sales tax exemption for EVs, and allows EVs to use the HOV lanes on the New Jersey Turnpike. It provides grants for EV charging stations, including DCFC, and has a statewide program to train auto dealerships in selling EVs.

#5: COLORADO

Colorado has made signiﬁcant strides in the past year to support the EV driver. Of note is the adoption of SB167, which passed in 2020 and allows for the direct sale of EVs by EV-only manufacturers, giving consumers greater access to the makes and models of EVs. Colorado also recently became a ZEV state, which also provides more access to EVs. In terms of ﬁnancial incentives enabling EVSE installation, Colorado has a unique program called the Alt Fuels CO EV DC Fast Charging Plazas Program, which provides grants up to 80% of the project cost for DCFC located near downtown areas, high-density housing, commercial developments, transit hubs and transportation network company (TNC) dense areas.

#6: NEW YORK

New York has an EV rebate and is a ZEV state. The state Public Service Commission has held multiple workshops on transportation electriﬁcation, and the state has developed programs to fund EV infrastructure, such as DC fast charging systems. New York has also undertaken EV education and outreach campaigns including workplace charging. The state oﬀers some HOV lane access or toll exemptions for EVs. New York would rank higher with the passage of proposed legislation to allow direct sales from emerging EV manufacturers, and with the state joining the TCI Memorandum of Understanding—or adopting its own clean fuels policy.

#7: VERMONT

Vermont has one of the nation’s most innovative and eﬀective pieces of legislation for climate action. The state’s Renewable Energy Standard, in its “Tier III” component, requires utilities to reduce greenhouse emissions beyond those from electricity use, such as emissions from transportation or from home heating. Through utility investments, Vermont now has good DCFC coverage on most of its major highways. The state also features an EV rebate with an excellent low-income supplement, although it would be better if the MSRP cap were set somewhat higher to allow for a broader selection of vehicles.

#8: CONNECTICUT

Like most of its New England peers, Connecticut is a ZEV state with a significant EV rebate. The state also has signed the TCI MOU. Connecticut saw significant activity on EVs in 2020, with its Department of Energy and Environmental Protection (DEEP) releasing an EV Roadmap document in April and the utility commission issuing a Request for Proposals for electric vehicle programs from the utilities in May. Direct sales by EV manufacturers remain a challenge, and the state does not yet offer many incentives for EVSE installation—although approval of the utility programs could change that.

#9: MAINE

Maine introduced a signiﬁcant EV rebate in 2019, a point-of-sale rebate with an additional amount for low- and moderate-income buyers. The state also provides incentives for EV infrastructure, with an RFP coming soon for DCFC systems. Maine is a ZEV state but is not yet a signatory to the Transportation and Climate Initiative. Maine established a Transportation Working Group within its Climate Council to provide recommendations on reducing emissions from transportation; the Working Group recommended electrifying 50-90% of light-duty vehicles and 55-80% of heavy-duty vehicles by 2050.

#10: WASHINGTON

Washington has a unique EV purchase incentive: a sales tax exemption policy for the purchase or lease of BEVs and 30+ mile PHEVs. The MSRP cap is $45k for new cars, which resulted in the state receiving only 14 points in this category instead of the max of 15, as this limits the selection of EVs for consumers; however, it should be noted that the MSRP cap for a used EV is set at $30k, which is certainly a notable policy. The state also does not allow for direct sales by all EV-only manufacturers yet, though legislation in 2021 could change that. Washington has led the West Coast, and the nation, in their EV signage, as they were the ﬁrst to develop uniform signage for the West Coast Green Highways, which is an easy way to promote education and awareness amongst consumers.

#11: RHODE ISLAND

Rhode Island only misses out on a spot in the top 10 by virtue of lacking an EV rebate. Rhode Island is a ZEV state and a signatory to the Transportation and Climate Initiative MOU. The state Public Utility Commission has approved transportation electriﬁcation programs by the state’s investor-owned utility, and the state has developed the Electrify RI grant programs to support EVSE deployment (including workplaces, multi-unit dwellings, public Level 2 charging, and DCFC) through the Volkswagen Settlement funds.

#12: MARYLAND

While the state lacks an EV rebate for the general public, Maryland does offer incentives for EV purchases for fleets (including local governments, nonprofits, and commercial entities)—which is not included in this report. The state allows EVs to use HOV lanes. Maryland has a significant DCFC grant program funded through the Volkswagen Settlement. At the utility commission, Public Conference 44 (PC44), Transforming Maryland’s Electric Grid, has engaged a broad range of stakeholders for in-depth exploration of many issues affecting the EV driver and EV deployment.

#13: DELAWARE

Delaware oﬀers a generous EV incentive, and rebates for Level 2 EV charging stations at workplaces, multi-unit dwellings, for ﬂeets, or for public use. However, Delaware is not a ZEV state, which limits EV availability for the consumer. Joining ZEV and TCI would place Delaware in the top ten states..

#14: HAWAII

Hawaii does not have a purchase incentive, nor is the state a ZEV state. Of note for Hawaii is the authorization given to the Hawaii Public Utility Commission to establish an EVSE rebate program, authorizing up to $500k annually for the installation of DCFC and L2 charging stations. The program, run by Hawaii Energy, offers these rebates for new stations and to retrofit current stations at commercial and MUD locations. An increased rebate amount is available for affordable housing developments as well.

#15: NEW HAMPSHIRE

New Hampshire has the potential to join its neighbors in the top echelon of states for supportive policies for the EV driver, and thus EV deployment. The state convened an Electric Vehicle Commission representing a broad cross-section of stakeholders and examining multiple issues; several of its agencies are active in reducing barriers to EV deployment. State laws ensure that EV charging stations are not blocked by conventional vehicles, nor blocked by a membership wall. However, New Hampshire is lacking a few high-impact policies. The state has planned to use Volkswagen Settlement funds to accelerate DCFC deployment along key highways, but has yet to award these funds. There is no statewide incentive for EVs or for EV infrastructure. And, New Hampshire is neither a ZEV nor TCI state at present.

#16: UTAH

Utah does not have a purchase incentive to support the EV driver, nor is it a ZEV state, but the state did pass legislation in March 2020 that allows for the state to partner with their utilities to invest up to $50M in EV infrastructure along highways, and particularly in rural areas, giving their EV drivers freedom to drive anywhere in the state with plenty of charging options to support the drive. Of note for Utah is that while Utah has an EV registration of $120, the state has taken very proactive steps to remedy the transportation funding issue and loss of gas tax revenue and allows EV drivers to instead opt in to a vehicle-miles travelled (VMT) program, which is a long-term solution that Plug In America supports.

#17: FLORIDA

Florida previously had a policy that allowed EV drivers into the HOV lanes, and allowed these drivers to be exempt from tolls, but that policy has now expired. Florida is neither a ZEV state nor does it have a statewide purchase incentive, but did recently commit to using $8.6M of Volkswagen Settlement funds to deploy DCFC stations around the state. The state also has plans to electrify more of their highways: the FL Department of Transportation (FDOT) is in the process of creating a master plan for the deployment of EVSE along the state’s highways by July 2021, which will also include staging areas for EVSE at key locations to be used as emergency evacuation stops.

#18: PENNSYLVANIA

Pennsylvania stands poised to break into the top echelon of states for supporting the EV driver and, thus, EV adoption with proposed legislation that would enable the state’s utilities to invest in transportation electrification. The state already offers an EV rebate; while the low-income supplement is beneficial, as is the availability of the rebate for used EVs, the base level may be too low to significantly advance EV adoption. The state also offers significant grants for EV charging (including DCFC) through Volkswagen Settlement funds. The state allows a limited number of Tesla stores but does not have such an allowance for other EV manufacturers.

#19: MINNESOTA

Minnesota could very well launch into the top 10 states after this year, as the state is in the process of adopting regulations to become a ZEV state, and is also seriously considering adopting a clean fuels policy. The Minnesota Public Utilities Commission has recently approved pilot programs by Xcel Energy that will allow for more DCFC along major highways, a residential pilot program to install and maintain charging equipment in a customer’s home, and is considering the utility to provide EV purchase rebates. Approvals for these programs were also upheld by the MN Court of Appeals in the fall of 2020. Certainly, proposed legislation authorizing the investment of utilities in the transportation electriﬁcation sector could greatly help in the authorization and approval for more utility programs that support the EV driver.

#20: VIRGINIA

Virginia is developing an EV rebate (for which we award it one point) but does not have this rebate yet. On other policies, the state lags behind its Mid-Atlantic neighbors, with an excessive EV registration fee (compared to the gas tax that would be paid by a similar conventional vehicle), and absence from both ZEV and TCI. However, the state is poised to invest a considerable amount from the Volkswagen Settlement into EV charging infrastructure.

#21: NEW MEXICO

New Mexico is set to become a ZEV state, but has not yet completed the process to adopt the ZEV regulation to offer more access to clean cars for New Mexicans. The state also does not allow for the direct sales of EVs by EV-only manufacturers, nor does it allow for the service of EVs by EV-only manufacturers. New Mexico does have comprehensive legislation that requires their investor-owned utilities to submit to the New Mexico Public Regulation Commission program applications to expand transportation electrification, including incentives for EVSE and customer-focused education and outreach programs. The legislature is considering a clean fuels policy, which—if adopted along with finalization of New Mexico’s ZEV rule—could launch New Mexico into a top 10 state next year.

#22: NORTH CAROLINA

North Carolina does not have an EV purchase incentive, nor is the state a ZEV state. In addition, the state EV fee of $130 is very near the maximum justiﬁable fee, which resulted in the state receiving only 5 points in that category. Of note in North Carolina is the Executive Order and related ZEV plan to increase the number of ZEVs in the state to at least 80,000 by 2025, which includes guidelines for establishing statewide EV charging corridors. The NC Department of Transportation (DOT) is also permitted to install and operate public EVSE at state-owned highway rest stops.

#23: MICHIGAN

Michigan, despite being the home to several legacy automakers, does not have many policies that support the EV driver. In fact, there was recently legislation proposed (but not successful) that would continue to prohibit EV-only manufacturers from being able to sell and service their vehicles in the state, thus limiting further the selection of EVs able for purchase to Michiganders. The state also currently has an EV fee of $135, which approaches the maximum justiﬁable fee, according to Consumer Reports. The MI Public Service Commission has held several workshops on EVs and transportation electriﬁcation, and has approved some small pilots from utilities in Michigan that support the EV driver.

#24: ARIZONA

Arizona is not a ZEV state, though the state previously supported the low-emission vehicle (LEV) program. The Arizona Corporation Commission (AZCC) has adopted policy guidance that explains what an investor-owned utility in the state can and cannot do in terms of transportation electriﬁcation programs. The AZCC has also instructed the utilities to develop a statewide transportation electriﬁcation plan, which is a process currently underway. Despite there being EV manufacturing based in the state (Lucid Motors and Nikola), there remains a lack of leadership at the state level for supportive EV driver policies.

#25: NEVADA

Nevada will certainly move up the ranks after this year, as the state is currently in the process of adopting a ZEV mandate. The state Legislature also only meets every other year, meaning that there will be many supportive EV policies before the Legislature in 2021, possibly including direct sales legislation, legislation enabling the utilities in the state to submit comprehensive transportation electriﬁcation programs, and possibly legislation that maintains a fair EV fee as the state considers other options for funding the highways. Nevada has taken steps to electrify highways through the Nevada Electrify Highway program, and has recently released a State Climate Strategy, which lays the foundation for more supportive policies to come for the EV driver.

CONCLUSION

With state legislative sessions about to begin in 2021, all states have the opportunity before them to pass policies that support the EV driver pre-purchase and during ownership, as well as policies that enable the build-out of EV charging infrastructure. States also have the opportunity to support the EV driver with greater education and outreach activities, campaigns, programs and partnerships.

An EV incentive is among the most effective means of increasing EV adoption. All of our top states featured significant incentives, often available at the point of sale, with a low- or moderate-income supplement, and with an MSRP cap high enough to allow for a diverse selection of EV models including trucks and SUVs. Incentives leverage a much larger investment of private capital on the part of the EV buyer, which supports manufacturers in scaling up production, driving innovation, creating economies of scale, and reducing the costs of future EVs. The benefits of EVs in reducing pollution and putting downward pressure on electricity rates apply to all residents of the area where the EVs are driven, not merely the drivers—incentives should be viewed in this light.

States adopting California’s Zero Emissions Vehicle (ZEV) requirement, as allowed under Section 177 of the Clean Air Act, establish goals for EV deployment and typically have access to a greater number of EV models. All of our top 10 states had both a signiﬁcant rebate and the ZEV requirement.

While California, Massachusetts, Oregon, New Jersey, Colorado, New York, Vermont, Connecticut, Maine, and Washington may be the top 10 today, we expect states like Nevada, Minnesota, Virginia, Pennsylvania, North Carolina, Maryland, and Illinois to make signiﬁcant progress this year by adopting policies that support the EV driver. We also expect states like Texas, Tennessee, Illinois, Wisconsin and Ohio to move up in the rankings next year. We expect to award more points for states addressing transportation greenhouse gas emissions through the Transportation and Climate Initiative once that framework is enacted through legislation or policy. And, for states that still have Volkswagen Settlement funds available, we encourage them to proceed with grants to support EV infrastructure, as this provides an opportunity to reduce emissions not only of greenhouse gases but also of criteria pollutants, particularly as more electric medium- and heavy-duty trucks become available. We look forward to re-ranking states in 2022 to showcase the states that take bold leadership in 2021 and move up in the rankings.

ABOUT PLUG IN AMERICA

Plug In America is a non-profit, supporter-driven advocacy group. Our mission is to drive change to accelerate the shift to plug-in vehicles powered by clean, affordable, domestic electricity to reduce our nation’s dependence on petroleum, improve air quality and reduce greenhouse gas emissions. Plug In America helps consumers, policy-makers, auto manufacturers and others to understand the powerful benefits of driving electric by providing practical, objective EV information.

REPORT CONTACT

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PHOTO CREDITS

Page 13: "2014 Ford Focus Electric" by Massachusetts Dept. of Environmental Protection is licensed under CC BY 2.0

Page 14: "West Coast Electric Highway user" by OregonDOT is licensed under CC BY 2.0

Page 17: "Chevy Volt" by JLaw45 is licensed under CC BY 2.0

Page 19: "File:Stamford Connecticut Skyline Aug 2017.jpg" by John9474 is licensed under CC BY-SA 4.0

Page 21 : "Mount Rainier at the Tacoma Narrows Bridge" by Jonathan Miske is licensed under CC BY-SA 2.0

Page 30: "Minneapolis, Minnesota" by Dougtone is licensed under CC BY-SA 2.0

Page 31: "Electric Tesla" by afagen is licensed under CC BY-NC-SA 2.0