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Digging Deeper: The “Why” and the “How” of Equity-Based EV Incentive Programs

Posted by admin on Aug. 9, 2022  /  Electric Vehicles, Clean Fuels Infrastructure, Clean Cities and Communities  /  Subscribe 0

by Tyler Sanchez, Clean Cities Intern

The inclusion and expansion of equity-based programs is an important part of local and state transportation planning programs. Electric Vehicle adoption is not as cut and dry as it may seem. Individuals with the economic standing to purchase an EV (ie: early adopters) may be willing to pay high prices for new, cleaner, technologies. But the question then becomes, how long does the average person have to wait for prices to come down before they too can reap the benefitsof an EV? (lower maintenance cost, less downtime, no oil changes, lower fuel cost, cleaner, etc)...

Simple right? If only it were. The question then becomes, why does equity need to be factored into the increased adoption of electric vehicles?

Based on current studies, data, and projections, the ways in which we manage how we move people and goods needs to be reimagined if we are to continue to decrease our dependence on foreign oil and further reduce emissions - specifically our carbon footprint. Part of this process is decarbonization and moving away from traditional fueling sources; including the move away from nonrenewable energy sources as fuel for motor vehicles towards renewable energy sources. In order to effectively combat the worst effects of climate change and air pollution, we must bring every community forward into these reimagined operations. To do so, traditionally underserved communities needed to be a focal point to ensure that broader areas of American society are brought forward together. To us, moving forward means bringing clean air to communities, it means a lower total cost of ownership for alternative fuel vehicles, and it means that every American will reap the health benefits of cleaner air and less pollution. Moving forward means this and so much more.

The median American household income in 2020, as reported by the Census Bureau, was $67,521. Meanwhile, the average cost of a new electric vehicle is upwards of $50,000, and the cost of a used electric vehicle has surged in recent months. Some of these price surges can be associated with increased gas costs and low inventory due to global supply chain issues - making electric vehicles financially inaccessible for millions of people across our country.

Currently, state and local equity-based programs focus on lowering the cost of electric vehicles through the utilization of rebate programs and more focalized income-qualified rebates; income-qualified rebates require certain income levels in order to qualify for the rebate. These programs utilize a wide range of paths to achieve their goal of making electric vehicle adoption more affordable and accessible for lower-income communities. Connecticut’s CHEAPR program provides additional income-qualified EV purchase rebates and used electric vehicle rebates. Massachusetts’ MassEVIP program provides incentives for electric vehicle charging equipment in multi-unit housing, workplaces, and universities. Other local programs like St. Paul’s Evie Carshare Program in St. Paul, Minneapolis, offer an electric vehicle option to their car-share service. For low-income customers, their monthly and per-mile fees are cheaper; a further expansion of the electric vehicle car share option to existing multi-unit dwelling carshare operations are currently underway.

Here are some quick facts about each of the programs above.

Connecticut’s CHEAPR Program

• Effective July 1, 2022, CHEAPR is increasing the new eligible vehicle MSRP cap to $50,00. Increasing the number of eligible EVs.
• The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) offersincentives to Connecticut residents who purchase or lease an eligible vehicle from a licensed Connecticut automobile
• For more information follow this link, https://portal.ct.gov/DEEP/Air/Mobile-Sources/CHEAPR/CHEAPR---Home#:~:text=The%20Connecticut%20Hydrogen%20and%20Electric,a%20licensed%20Connecticut%20automobile%20dealership.

Massachusetts’ MassEVIP

• MassEVIP Workplace & Fleet Charging is one of several MassDEP rolling grant programs aimed at making electric vehicles (EVs) and EV charging stations more widely available across Massachusetts.
• The Workplace & Fleet Charging Program provides incentives for employers and fleetoperators to acquire and install Level 1 and Level 2 EV charging stations. Applicants with 15 or more employees in non-residential places of business are eligible. MassDEP provides up to 60 percent of thefunding to a maximum of $50,000 per street address for hardware and installation costs.

• For more information follow this link, https://www.mass.gov/how-to/apply-for-massevip-workplace-fleet-chargin g-incentives

St. Paul’s Evie Carshare Program

• Evie is simple. Walk to your closest car and drive. End your trip in the Home Area in an approved parking space. One-way trips by the minute, hour, or Find an Evie anywherewithin the 35-square mile Home Area in Saint Paul and Minneapolis.
• Pay only for the time you use Evie, we take care of the rest. One-way trips let you start yourday in Dinkytown and end it in Leave the car at any authorized parking location and be on your merry way. Evie is charged on the EV Spot Network, providing over 280renewably-powered on-street charging spaces across Saint Paul and Minneapolis.
• For more information follow this link, https://eviecarshare.com/

These programs host equity considerations as a core principle of their functions. By doing so they are able to involve a larger community and their goal of moving towards a decarbonized society becomes more feasible. It is imperative that all communities and all ranges on the socioeconomic scale are brought forward together while we implement operations to build a more sustainable future.

Executive Director's Note: LCF believes strongly that clean air is a right of all citizens and is dedicated to fully supporting underserved communities in our territory. To do this correctly, we are voluntarily looking inward at our own processes to ensure that they do not interfere with or hinder our ability to serve our state in an equitable manner. We will also be acting more proactively to bring more voices to the table as we work to expand access to clean transportation options around our state. Please check out our Diversity, Equity, and Inclusion plan to see how our coalition intends to address these important issues. View the plan here: https://louisianacleanfuels.org/images/downloads/dei_short_form_plan.pdf

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