Electric Vehicles Encouraged At Nevada’s Special Session
Nevada Governor Brian Sandoval’s New Energy Industry Task Force is seeking out ways to better promote electric cars in Nevada and accelerate adoption of electric vehicles, or EVs. Research by the Southwest Energy Efficiency Project shows significant economic and other benefits as use of electric vehicles grows in the Silver State.
The task force recommended that the Legislature study financial incentives to spur adoption of electric vehicles. Nearby states, including Utah, Arizona, and California have adopted incentives (in the form of rebates, tax credits or reduced license fees) and are seeing increased sales of electric cars as a result.
A 2014 study by Senior Transportation Analyst Mike Salisbury asserted that electricity is the least expensive transportation fuel available to Nevadans. People who drive electric cars can save up to $1,300 annually on fuel costs depending on the price of gasoline. The same study showed that — with increasing adoption of EVs — the total economic benefit to the state in reduced fuel costs could reach $138 million per year by 2030. The money that Nevadans save on fuel is disposable income that could instead be spent on local goods and services, which boosts local economies.
A study by Dr. David Roland-Holst, Economist at the University of California, Berkeley, found that money spent locally creates 16 times more jobs than dollars spent on importing fossil fuels. Money spent locally also generates additional local and state sales taxes.
Electric vehicles are not affecting gas tax revenues in Nevada. To date, only a fraction of 1 percent of all vehicles in Nevada are electric, and their impact on gas taxes is negligible. Eventually though, as the number of EVs grows, a mechanism to capture the equivalent of gas tax revenue will need to be in place. One innovative approach would be to begin charging a fee when the car is registered. These fees could initially be invested in EV-charging infrastructure, then transition to highway funds as the number of EVs grows large enough to meaningfully affect gas taxes.
NAFA Fleet Management Association
http://www.nafa.org/