EV Direct Sale, Rebate Bills Pass CT Committee

CONNECTICUT —The legislative Transportation Committee voted to advance two bills that could change the landscape for electric vehicles in Connecticut. One bill would allow exclusive electric vehicle manufacturers to sell directly to consumers.

The other bill would expand the state’s electric vehicle rebate program, make it easier to install vehicle chargers, and put the state on a path toward a full electric fleet.

The direct EV sale proposal has gained approval from legislative committees in the past, but they haven’t gotten a full vote by both legislative chambers.

Electric vehicle proponents say the bill would help pave the way for more electric vehicle sales in Connecticut.

“The single biggest roadblock is not permitting direct sales,”EV Club of CT President Barry Kresch said in an interview with Patch. “It’s also fundamentally trying to hold back the tide.”

Cars sold in Connecticut need to be purchased through a dealer. Some exclusive electric vehicle manufacturers like Tesla and soon Rivian sell directly to customers and have no franchise dealerships.

Auto dealership groups have advocated against changing the law and said it would result in a loss of local jobs. The Connecticut Automotive Retailers Association, which represents 270 new car dealerships, opposed the bill.

“SB 214 creates a loophole in Connecticut’s laws to the benefit of only select corporations,” CARA President Sara Fryxell wrote in testimony against the bill. “CARA supports Connecticut’s franchise laws, which protect consumers. Local new car dealers serve as advocates for their customers and provide local and dependable service.”

CHEAPR EV rebate overhaul

The SB04 bill that passed the Transportation Committee would expand the state’s electric vehicle rebate program by increasing the MSRP cap from $42,000 to $50,000. The increase would bring the base Tesla Model 3, base Ford Mustang Mach-E and other vehicles back into the program.

“It’s an improvement, although hit’s not keeping up with the inflation we are seeing unfortunately,” Kresch said.

The standard CHEAPR rebate is $2,250 for a full EV and $750 for plug-in hybrid electric vehicles. Plug-in hybrid electric vehicles typically have a smaller battery than a full EV, but also have a gas engine.

The bill would also establish a $500 voucher program for the purchase of electric bicycles that cost $2,000 or less. The voucher program would have certain income limits.

There have been more than 7,800 Connecticut Hydrogen and Electric Automobile Purchase Rebate program (CHEAPR) rebates issued from 2015 through the end of 2021. About $8.1 million went to buyers of battery electric vehicles, and another $5.1 million was used for plug-in hybrid vehicles.

CHEAPR rebates declined after the state lowered the MSRP cap to $42,000. About $723,500 in CHEAPR rebates were issued for 2020 applications, according to the state Office of Legislative Research.

The Tesla Model 3 led all models in rebates with more than 1,800 since it was launched in 2018. The Toyota Prius Prime came in second at around 1,200 rebates.

Additionally, only 34 percent of eligible electric vehicles received a CHEAPR incentive since June 2021, according to the state Department of Energy and Environmental Protection.

The bill would also introduce a $5,000 incentive to residents of environmental justice communities and increase incentives for municipalities, businesses and nonprofits to purchase EVs.

Charging

SB04 would include “right to charge” language that would make it easier for condominium owners to install their own chargers. Owners would still need to pay for the equipment installation, but the bill removes “unreasonable restrictions” on installation permissions.

“I’ts just so easy to own an EV if you can charge at home,” Kresch said. “If you have to depend on public chargers, it becomes more difficult. We need to enable people to charge at home, that will take stress off public charging.”

Eversource and UI started an incentive program to subsidize charging hardware and installation, Eversource offers rebates of up to $1,000 for level-2 (240-volt) connected chargers. It also offers up to $200 per year for residents who join its managed charging program.

One of the biggest misconceptions about EVs is their range capacity, Kresch said. There is still a belief among many people that EVs typically have less than 100 miles of range. Nowadays, it’s more common for EVs to have 250 or even 300 miles of range.

Still, EV charging infrastructure has to improve in order to make EVs more popular, Kresch said.

Private companies like Electrify America and Chargepoint are expanding their networks, and part of the federal bipartisan infrastructure bill includes billions of dollars for public charging networks. Tesla also has a robust private network of chargers.

SB04 would also direct federal funding to expand rural charging infrastructure in Connecticut.

State EV Fleet

SB04 also sets electric vehicle purchase and leasing mandates for the state’s car and light-duty truck fleet. At least 15 percent of such vehicles would need to be EVs by Jan. 1, 2023. The bill gradually expands the percentage of state fleet EVs until it reaches 100 percent by 2030.

The bill would also prohibit the state from purchasing or leasing diesel-fueled transit buses by Jan. 1, 2024.