Darrell Clarke
Photo Credit: Darrell Clarke
As SUVs were gaining momentum in 1998, the Sierra Club issued a press release condemning “greenwashing” by General Motors for using a loophole to meet the federal CAFE standards. Twelve years, a bankruptcy, and some serious engineering feats later, in 2011 the Sierra Club was applauding General Motors for releasing their highly-touted Chevy Volt. This week, the two are working together supporting electric vehicle consumer incentives in New York.
Earlier this week, automakers, utility companies, and environmental organizations sent a letter of support for the inclusion of a strong electric vehicle (EV) consumer rebate in the budget bill currently being considered by the New York governor and legislature. The unlikely allies came together in support of a consumer rebate for electric vehicles, which was included last week in both the Assembly and Senate budget resolutions. Governor Andrew Cuomo, Senate Majority Leader John Flanagan, and Assembly Speaker Carl Heastie are expected to negotiate a final budget bill this week.
As we’ve seen in other states, electric vehicle consumer rebates—a check or discount of $1,500 to $5,000 off the price of a car for a purchase or lease—are an important policy tool to increase electric vehicle sales. An electric vehicle rebate lowers the upfront cost of electric vehicles and, coupled with decreased fueling and maintenance costs, puts EVs in the same lane as conventional gasoline-powered vehicles. With the federal EV tax credit and a state EV rebate, many consumers are securing very low monthly leases or a purchase price just under or just over $20,000. With only 15,000 EVs currently on New York’s roads, an EV rebate is one key step toward meeting New York’s commitment to 850,000 EVs by 2025.
Signers of the joint letter include some unlikely allies: the Sierra Club, Acadia Center, Center for Climate and Energy Solutions (C2ES), ChargePoint, Conservation Law Foundation, Consolidated Edison Co. of New York, General Motors, Environment America, Environment New York, Greater New York Electric Auto Association, National Grid, Plug In America, TechNet, Union of Concerned Scientists, and Volkswagen Group of America.
Transportation accounts for nearly 35 percent of New York’s greenhouse gas emissions. A large-scale move away from polluting gasoline-powered vehicles toward much cleaner electric vehicles is critical to achieving the state’s goal of reducing harmful climate pollution. In New York, an EV is about 70 percent lower in emissions than a similarly sized conventional car, even factoring in emissions from electricity sources. And with Governor Cuomo recently committing to a significant scale-up of renewable energy, EVs in New York are slated to become even cleaner.
By decreasing the sticker price of an EV, the rebate is great for consumers, but it’s also better for New York’s economy. Powering cars with locally generated electricity keeps more NY energy dollars in New York.
The rebate program should promote access to EVs to as many New Yorkers as possible. An MSRP (manufacturer's suggested retail price) cap may help do that, but an income cap may do so more effectively as it evaluates a driver’s need more directly. The state could also consider additional rebates for low-income residents, like the rebate program does in California. Including pre-owned EVs in the rebate program could also increase access, as is done in Colorado, and incentivizing local EV car-sharing programs geared toward low-income residents, like in Los Angeles.
Environmental groups haven’t been aligned with the auto industry on emissions issues in recent years, but as Roger Downs, the Conservation Director of the Sierra Club Atlantic Chapter stated, “The coming together of environmental organizations and companies with diverse interests shows just how far the benefits of an electric vehicle consumer rebate extend. Implementing a consumer rebate for the lease or sale of an electric vehicle will be one of the best ways for Governor Cuomo and state legislative leaders to help New Yorkers drive away climate pollution.”
At our booth at the New York Auto Show this week, our volunteers are engaging with automakers to promote the many plug-in cars on the show floor to curious consumers. If you’re in New York City, please stop by our booth near the indoor Clean Air track at the show! And if you live anywhere in New York, please use this link to tell Governor Cuomo to include the consumer electric vehicle rebate in the 2016-2017 budget.