by Jeremy Orr | Aug 27, 2021 | Electric Vehicles, Legislative Watchlist
Did you know Wisconsin is one of over a dozen states that currently does not allow direct sales of electric vehicles?
This week, I had the opportunity to provide testimony – alongside Tesla, Lucid, and other industry experts – explaining RENEW Wisconsin’s support of Senate Bill 462, which would allow direct sales of electric vehicles in Wisconsin.
This is an important and much-needed step towards electric vehicle (EV) expansion in Wisconsin, as it removes market barriers and allows consumers greater access to EVs that better suit their financial and driving needs.
This legislation also ensures Wisconsin does not get left behind in the electric vehicle marketplace. It has the potential to bring jobs to Wisconsin by opening the door for companies like Fisker, Rivian, Lucid, and Tesla to both manufacture and sell EVs directly in Wisconsin. As Henrik Fisker, CEO and Co-Founder of Fisker, Inc., recently said in Forbes: “The one sticking point for me would be that I don’t want to start producing a car in a state where I can’t sell my car direct.”
And if you’re worried about direct sales putting dealerships out of business, research shows that in states that currently allow direct sales of electric vehicles, the traditional dealership model experienced 52% sales growth and 18% employment growth (higher than the national average).
However, in states that do not currently allow direct sales, the sales and employment growth of the traditional dealership model is lower than the national average and much lower than in states that do allow it.
Senate Bill 462 is about diversifying Wisconsin’s auto industry and Wisconsin’s economy. In 2020, 45% of electric vehicles purchased by Wisconsinites were purchased in-state, and 55% were purchased out-of-state. That’s 55% in lost sales revenue due to an out-of-state electric vehicle purchase!
The chart illustrates the projected growth in electric vehicle adoption in Wisconsin based on Bloomberg’s EV Outlook 2021 (analysis conducted by Robin Lisowski of Slipstream Aug 2021).
Passage of this legislation would let consumers decide for themselves, how they want to shop for and purchase an electric vehicle. As Kathy Harris from NRDC puts it “Let Drivers Buy Clean Cars.”
by Jim Boullion | Aug 21, 2021 | Action Alert, Advocacy, Electric Vehicles, Legislative Watchlist
The Senate Committee on Government Operations, Legal Review, and Consumer Protection scheduled a public hearing on Senate Bill 462 / Assembly Bill 439 relating to ownership, control, or operation of a motor vehicle dealership and performance of motor vehicle warranty service.
Wednesday, August 25, 2021, 10:00 AM
Room 411 South, State Capitol
Senator Dale Kooyenga (R-Brookfield) and Representative Adam Neylon (R-Pewaukee) introduced legislation to allow a direct sales business model for electric vehicles (EVs) in Wisconsin. If passed, EV manufacturers could sell and deliver their vehicles directly to consumers, either online or from a manufacturer-owned dealership, rather than Wisconsin’s current dealership model. The bill would also clarify that an EV manufacturer can provide warranty and preparation work on vehicles they manufacture in Wisconsin.
RENEW Wisconsin strongly supports this initiative and sent a letter to legislators urging their endorsement. To help pass this legislation, we encourage you to contact your legislators directly or attend the public hearing to register in favor, or even better, speak directly with the committee members.
The Kooyenga/Neylon bill is one of the keys to increasing EV availability for Wisconsin businesses and consumers and reducing transportation-related greenhouse gas emissions. The internet has completely reimagined how we buy things, opening opportunities, lowering prices, and eliminating many market barriers of the past. The bill would permit Wisconsin’s consumers greater access to EVs that better suit their financial and driving needs by allowing them to purchase directly from the manufacturer-dealership without traveling to Illinois or Minnesota.
If you have any questions or would like to report whether or not your legislators support this legislation, please contact Jim Boullion, Director of Government Affairs at jim@renewwisconsin.org or Jeremy Orr, Emerging Technologies Program Manager at jeremy@renewwisconsin.org.
by Jim Boullion | Jul 15, 2021 | Advocacy, Community Solar, Electric Vehicles, Legislative Watchlist, Policy, Renewables, Solar, Utilities
When Governor Tony Evers introduced his 2021-23 Budget Bill in February, it included 28 provisions to advance clean energy and energy efficiency in Wisconsin. Among those provisions were recommendations to expand Focus on Energy, invest in the clean energy workforce, and support Wisconsin’s electric vehicle infrastructure.
Unfortunately, by the time the Governor signed the Budget on Thursday, July 8th, those 28 provisions, along with a majority of the Governor’s other initiatives, were removed from the Budget document adopted by the Joint Finance Committee (JFC) and legislature.
A number of the provisions and other clean energy bills may still be considered during the remainder of the upcoming regular legislative session. Among the proposals we expect to be considered include:
- Community Solar Expansion – Authorize the development of non-utility-owned community solar projects. Would direct the PSC to establish fair credit rates for subscribers and compensation to utilities for the use of their infrastructure and billing services. (Introduced for co-sponsorship on July 14th)
- 3rd Party Financing – Affirm 3rd party financing of solar arrays is legal.
- Direct Purchase of Automobiles – Enable electric vehicle manufacturers to sell vehicles directly to consumers in Wisconsin, either online or at manufacturer-owned facilities, without going through an independent dealership.
- EV Charging Station Grants – Allocate up to $10 million of the unspent VW Settlement funds for clean energy corridor incentives for EV charging stations.
- EV Charging Fees – Clarify selling electricity by the kilowatt-hour to EVs does not subject EV charging station owners to utility regulation.
RENEW Wisconsin will continue to work with the legislature and the Governor to advance these and other clean energy initiatives. We hope you will join us.
If you would like to talk to your legislators about any of these provisions or have other clean energy ideas that you think the State should adopt, click here to find your representatives’ contact information.
If you have any questions or comments about any of these issues, please contact Jim Boullion, RENEW Wisconsin’s Director of Government Affairs, at jim@renewwisconsin.org.
by Jeremy Orr | Jun 24, 2021 | Electric Vehicles, Energy Storage
Further demonstrating its commitment to electric vehicle innovation, including domestic battery supply chain, energy storage, and electric vehicle grid integration, the Department of Energy (DoE) announced last week a Request for Information (RFI) for Electric Vehicle (EV) Grid Integration and $200 million in funding for electric vehicles, batteries, and connected vehicles projects at DoE national labs.
Complimenting the Vehicle Technologies Office’s $62 million in funding for low emissions transportation projects, the $200 million funding opportunity focuses on electric and connected vehicle projects, and supports battery sourcing innovations – like sustainable mining and battery recycling – which strengthen the domestic lithium battery market, insulate against foreign battery supply chain disruptions, and further the goals of the DoE’s Energy Storage Grand Challenge. The funding is open to DOE’s network of 17 national laboratories and followed recommendations from the Federal Consortium for Advanced Batteries’ recently released National Blueprint for Lithium Batteries 2021-2030.
The DoE also released an RFI for EV Grid Integration, exploring the relationship between increased EV penetration and potential grid impacts and resiliency. DoE is requesting information from stakeholders on the following issues:
- Use of EVs to maintain the reliability of the electric grid
- Impact of grid integration on EVs
- Increased penetration of EVs and associated impacts on grid
- Standards to integrate EVs with the grid, including communications systems, protocols, and charging stations
- Cybersecurity challenges resulting from transportation electrification
The RFI for EV Grid Integration is not a funding opportunity. However, information collected may be used by DoE in its “Vehicles to Grid Integration Assessment Report” to Congress.
For more information on both opportunities, please visit the Office of Energy Efficiency and Renewable Energy.
by Jeremy Orr | Jun 16, 2021 | Electric Vehicles
A recent Analysis Group report for Advanced Energy Economy – called Economic Impact of Stimulus Investment in Transportation Electrification – demonstrates a significant return on the stimulus funds spent on electric vehicle (EV) and transportation electrification initiatives as part of President Biden’s American Jobs Plan.
According to the report, a total of $274 billion is slated for transportation electrification initiatives nationwide, which would result in a nearly five-fold return on public investment, or $1.3 trillion added to the national GDP!
This public investment would also spur upwards of 11 million jobs,[1] including EV and battery manufacturing positions; generate over $230 billion in tax revenue for federal, state, and local governments; result in $19 billion annual savings for consumers, businesses, and governments by switching to EVs; and also attract significant private investments at $2.60 to each $1 of public investment.
What does this mean for Wisconsin?
There are legislative discussions underway to allocate $5 million of Wisconsin’s Volkswagen Settlement funds for electric vehicle charging infrastructure. Governor Evers has also proposed $5 million in transportation-funded bonds to be used for EV charging infrastructure. If these two proposals pass, we would have $10 million in public funds investment in EV infrastructure. Using the Advanced Energy Economy report’s finding of a five-fold return on investment for public dollars spent for EV initiatives, these funds have a potential return of $50 million. This would bring Wisconsin’s current GDP of $294 billion to $344 billion, which is significant given that Wisconsin’s GDP dropped by almost $14 billion from 2019 to 2020.[2]
Of course, this $50 million return on investment doesn’t factor in any other future state or local public investments in transportation electrification, including grant programs, utility investments, and other local monies spent on rebates and incentives programs for electric vehicles and charging infrastructure.
Additionally, using the report’s estimated $2.60 in private investments for every $1 of public investment spent, the above combined $10 million in projected public investment from VW Settlement funds and transportation-funded bonds could spur an additional $26 million in direct private investments within the state.
None of the above returns take into account the number of potential Wisconsin jobs to be created by these investments, the fuel and maintenance cost-savings consumers and businesses can expect by switching to EVs, the tax generation that would trickle down to state and local governments from the federal stimulus, or any additional tax revenue generated from investments within the state.
Investing in the electric vehicle market may be the boost to Wisconsin’s economy and jobs that we so badly need.
[1] Measured in job years, i.e., a job created by stimulus spending that lasts one year equals one job-year. See report.
by Jeremy Orr | May 25, 2021 | Electric Vehicles, Policy
Senator Dale Kooyenga (R-Brookfield) and Representative Adam Neylon (R-Pewaukee) circulated a bill earlier this week that would allow for a direct sales business model of electric vehicles (EVs). If passed, EV manufacturers could sell their vehicles directly to consumers, either online or from a manufacturer-owned dealership, rather than through the traditional dealership model we know today.
The Kooyenga/Neylon Bill is key to increasing EV adoption and is a much-needed policy to overcome a free market barrier. It would permit Wisconsin’s consumers greater access to EVs that better suit their financial and driving needs by allowing them to purchase online or directly from the manufacturer-dealership.
Consumer purchasing power is especially relevant when considering increased demand in the electric vehicle market. Edmunds predicts the U.S. will experience record EV sales in 2021, while Bloomberg projections demonstrate increased demand in the coming decades, with a projected 54 million EV sales in 2040. Even here in Wisconsin, we can expect anywhere from 25%-50% EV adoption by 2050[1]. Adopting the Kooyenga/Neylon bill would give consumers more EV purchasing options, granting direct access to their electric vehicle models of choice as EV demand continues to climb and more models become available.
Online consumer spending increased over the past year, and most consumers prefer a portion of their vehicle purchasing decisions to be online. The virtual EV marketplace is expected to grow alongside a rapidly growing EV market, lending greater free-market support for the Kooyenga/Neylon bill.
At any rate, aren’t the purchasing decisions of Wisconsin’s consumers better left to them? The free market says so, and this is exactly what the Kooyenga/Neylon bill would allow.
For more information, please contact Jeremy Orr at (608) 210-1428 or jeremy@renewwisconsin.org.
[1] Plug-In Electric Vehicle Analysis of Wisconsin, RENEW Wisconsin and University of Wisconsin-Madison Energy Analysis and Policy Capstone Project, May 2019.
