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Guest Post: Tim Echols – “All Good Things Must Come to an End”

As Governor Nathan Deal signed the Transportation Bill which repeals the ZEV/LEV Tax Credits, Public Service Commissioner Tim Echols shares his thoughts on what to do now in this guest post.  Throughout the battle to keep some EV tax incentive, Tim has been a strong and unwavering voice in support of sustaining the growth of EV’s in Georgia. Many thanks Tim! #2016

All good things must come to an end  By Tim Echols

It is official.  The generous $5000 state tax credit for leasing or purchasing an electric vehicle is expiring June 30th.  The Governor has signed the legislation that passed both the Senate and the House at the Capitol, and would-be electric car drivers are scrambling to get their Nissan LEAF, Tesla or other pure electric vehicle before the credit disappears.

Here are some factors you should consider before buying or leasing an electric car.

First, make sure a pure electric car works for your lifestyle. I live in Athens and lease two Nissan LEAFs, and it works great for my wife and daughter who scoot in and around Athens.  When they need to go into Atlanta or drive out of state, they use my E85 car. They charge their cars in our garage and it costs about $20 per month on our electric bill.

Second, these cars have their limitations. Since I have been on the Georgia Public Service Commission, I have praised pioneers who bought or leased an essentially experimental car like a Tesla or Nissan LEAF. It is good for our environment and good for our grid. These consumers are choosing to use a “made in America” fuel too—homegrown Georgia electricity. But mark my word, you will experience “range anxiety” from time to time as you try to press the limit of the 100 mile range on the Nissan LEAF.  Tesla owners…not so much.  They just have to worry about making their giant car payment.

Third, besides costing less to operate, our Nissan LEAFs, both on a 24 month lease, save our family money.  Our monthly lease payments are about $270 per month per car.  Nissan “bakes” the $7500 federal tax credit into the transaction, and you simple file with the state department of revenue for the state credit.  Figured over 24 months, that is $208 per month, leaving us with about $62 per month out of pocket for the car.  We installed a garage charger for about $700 including labor, and the car never needs oil, water, transmission fluid…or gas.  We feel like that great deal more than compensates for the “range anxiety” we occasionally experience.

Fourth, the local economy may get a boost from this transaction too. When that tax credit comes back to you, many electric car owners use it to pay college tuition for a child, or a bill, or just put it in the bank to offset the payments.  According to the Georgia Department of Economic Development, for every one percent of petroleum-based miles traveled in Georgia that is displaced by electric vehicles, approximately $201 million dollars will remain in the state of Georgia annually. Each pure electric vehicle purchased keeps $2,242 annually in the state of Georgia by fueling with electricity rather than petroleum-based products.

Finally, electric cars help our grid. What you don’t hear is that electric car owners are helping Georgia cut electricity usage, which ultimately saves everyone money. How? Many shift their energy usage to the overnight hours due to an incentive from Georgia Power for electric car owners. According to a study of 1,000 Georgia electric car owners, these customers reduced their annual bill by $180 – even though they charged their car and didn’t buy gasoline for the entire year.  This “load shifting,” as we call it at the PSC, saves them money and yet uses less “peak load” electricity resulting in cheaper bills for everyone.

Electric cars aren’t for everyone, but they work great for us. If you want to take advantage of the Georgia tax credit, you should act quickly.  Meanwhile, feel free to contact me for more information at timothyechols@gmail.com and join me at the Alternative Fueled Vehicle Roadshow coming to a city near you. See more at www.afvroadshow.com and happy motoring.

Commissioner Tim Echols serves on the Georgia Public Service Commission and leases two Nissan LEAFS. He regulates electricity, natural gas and telecom for the state of Georgia.

Editors Note:  To qualify for the $5,000 ZEV, Georgia residents must take delivery of the qualifying new vehicle (Nissan LEAF, Tesla Model S or Roadster, KIA Soul EV, VW eGolf, Mitsubishi Mio) by midnight June 30, 2015.  The vehicle must be in your possession with a Motor Vehicle Purchase Agreement signifying delivery.  Contact your automotive dealer/showroom for more details.


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The Top Electric Vehicle Stories of 2015

No that’s not a typo in the headline!  2014 is in the history books and by all accounts, has been a fantastic year for electric vehicles – smashing the 100,000 annual unit sales mark in November!  More new EV models have launched in 2014 than in the prior 3 years combined and many new/upgraded EVs are coming in 2015 and beyond.

So when we look back at 2015, here’s what I believe the top stories will read nationally and right here in Georgia:

1). Electrified Vehicles Reach the 1% of vehicles sold nationally in 2015. EVs should easily reach this mark on a total industry sales of 16.5-17.0 million yielding 165-170,000 electrified vehicles added to US roads in 2015. Many states have added electric vehicle or charging station incentives or both.  With expanded charging infrastructure and high satisfaction rates among EV owners, the rate of sales growth should propel EVs close to 1% of all vehicles sold.

2). Nissan LEAF approaches the 200,000 Federal Tax Credit phase out. What Now? Arguably, Nissan has done the best job marketing their all electric LEAF which launched in the US in 2011.  By the end of 2015, cumulative LEAF sales will be close to 170,000, just 30,000 units shy of the Federal Tax Credit phase out requirements.  With an all new vehicle slated to launch in the 2017 Model Year (on sale as early as January 2016), how will Nissan market the all new LEAF without its $7,500 tax credit?  Stay tuned – Carlos Ghon has a plan!

3). Tesla FINALLY launches the Model X – Falcon Wing Doors and All.  Look for a Merry Christmas 2015 post on the Tesla blog from Elon Musk announcing the first deliveries of the 2015 Model X – it’s still 2015 and Elon has ‘kept his promise.’  Seriously, the Model X will be another game changer in the high end 6-7 passenger SUV market and will begin to impact Tesla sales in 2016, attacting new buyers to the marque.  Of course, it won’t hurt sales of the Model S, since the majority of its owners have already traded up to the Model D – satiating their need to have the latest Tesla gadget. Savvy used car buyers will snap up the discarded Model S 1.0 offerings at reasonable ($50,000 – 60,000) prices knowing that Elon has promised a battery upgrade in the future and the software upgrades continue.

4). Chevrolet VOLT 2.0: a lower cost VOLT 1.0? Let’s face it, without Bob Lutz there would not have been VOLT 1.0. And without former GM CEO Dan Akerson pushing to get $10,000 of cost out of the VOLT, there would not be a 2.0. GM is working hard to ‘tease’ us with it’s mini reveals.  But look at the 2015 Chevrolet Cruze and you get an idea of what the 2016 VOLT is going to look like: compact.  Range may improve modestly (45-50 electric miles) but this vehicle will not be a game changer; it’s likely the vehicle that should have launched in 2011:  $29,995 base price, useable gauges, 3 person “Cruze Sized” rear seat.‘  I hope there are more substantial surprises when the VOLT 2.0 is unveiled at the NAIAS the week of January 12, 2015: like using more than 60% of the 17.1kWh battery!

5). Georgia’s ZEV Tax Credit takes center stage. With Georgia and metro Atlanta garnering a lot of headlines in 2014 as the fastest growing EV market in the US, the handling of the current ZEV/LEV tax credit (currently $5,000/$2,500 with no sunset) will become a national story.  How this one ends up is anyone’s guess.  But one thing’s for sure: Nissan will have the best sales month ever in December 2014 for the LEAF given the metro Atlanta dealers are selling/leasing against the fear that the $5,000 ZEV tax credit will disappear in 2015 so get your LEAF now!

Let’s just hope that everyone can agree on the core issue:  air quality in metro Atlanta/Georgia needs more EVs on our roads to help get annual CO2 emissions well below the 150 million metric tons emitted in Georgia!

6). “PV2EV” begins to have it’s day in the sun. Wouldn’t it just be smart to tie EV charging to its own renewable power generation? For years, separate and uncoordinated incentives (and arguably disincentives) between solar power and electric vehicle charging station infrastructure has kept these two technologies apart.  2015 might be the year when enough solar powered charging stations are built to move the needle in the direction toward a sustainable PV2EV deployment.  With solar power costs falling and the cost to retrofit parking lots and garages with EV charging stations expensive, the time has come for PV2EV to have it’s day in the sun!

7). Georgia Becomes A Leader in Electric Vehicle Charging Infrastructure. Between the push by NRG into the metro Atlanta market from it’s home base in Houston TX, and the announcement by Georgia Power to construct it’s own charging islands (both firms offering DC Fast Charge and 240 V Level 2) Georgia and more specifically metro Atlanta, will become a model for the deployment of fast and convenient EV charging.  By the end of 2015, metro Atlanta will have at least 50 charging islands including installations in Athens and other outlying cities.  Added to that are the public charging stations funded by GEFA that will improve EV charging station availability in the Atlanta suburbs.

It will be fun to see how 2015 unfolds for electric vehicles and the supporting infrastructure. We’ll come back and revisit these ‘headlines’ and see where we hit and where we missed.  Your comments and your own headlines are welcome.

Thanks for your readership in 2014!  


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Guest Post by Tim Echols, Commissioner, Georgia Public Service Commission: Why Retain the ZEV/LEV Income Tax Credit In Georgia?

I was in a restaurant the other day when a legislator came up to me and asked an important question that all of us need to be ready to answer.  He asked, somewhat hostilely I might add, “what has Georgia received for the almost $15 million invested in electric cars via the tax credit?” 

Our response to this question may determine whether Georgia’s $5000 ZEV income tax credit lives or dies.

Probably our first answer needs to be economic, and not just “our” personal economics. Remember, according to the Georgia Department of Economic Development, for every one percent of petroleum-based miles travelled in Georgia that is displaced by electric vehicles, approximately $201 million dollars will remain in the state of Georgia annually.  Each pure electric vehicle purchased keeps $2,242 annually in the state of Georgia by fueling with electricity rather than petroleum-based products.  This is huge.

The second reason is similar and one that Don Francis of Clean Cities Georgia talks about frequently.  The tax credit received comes back after we file our taxes as a refund, and then gets spent.  It buys things in Georgia like clothes, appliances and services.  That has a multiplier effect.

Third, electric vehicles fit nicely with our electric grid here.  Georgia Power has set up a special tariff [Editor Note: called Plug In Electric Vehicle Time of Use Rate Plan – see Resources tab] to encourage people to get electric vehicles and charge them overnight—when power is super cheap and plentiful.  According to a study of 1000 of these Georgia electric car owners on the PEV rate plan, they are not only using electricity instead of gas, but they are saving $180 per year to boot.  How?  They are shifting their usage to the evening and overnight period. This is good because we have extra electric capacity overnight, and these vehicles help us utilize it.  Then, during the day, electric vehicles and equipment are quiet, clean and efficient and offer users the opportunity to save money on fuel and maintenance costs and reduce their environmental impact.

Fourth, with Atlanta out of compliance with the EPA rule, the metro area needs all the help it can get to attain the standard and save everyone the cost of an emission sticker—not to mention their lungs. Remember, gasoline or diesel engines deteriorate over time, leading to higher emissions with the age of the vehicle, whereas electric vehicles will potentially get cleaner over time as the generation of electricity gets cleaner.

Finally, electric cars send a message to young people. As I sat recently with Mayor Reed discussing Atlanta’s success with electric cars, I asked him what he thought was the greatest benefit our region has received from the $15 million invested through state tax credits thus far. He didn’t hesitate.  He said it has sent a strong message to millennials about our priorities. This investment, he further explained, makes Atlanta a more livable city where people want to be.  He likened it to the Beltline and other quality of life projects that are drawing talented young people back into the city to live and work.  As an Atlanta native, I can get excited about that.

Nissan is having great success with the LEAF and Georgia is the 2nd largest market in the U.S. for all EVs.  But behind Nissan, BMW, Kia and many other manufacturers are coming with electric cars.  Our message to the legislature needs to be to hold off for another year before taking action.  Let’s allow the other manufacturers to benefit as Nissan has done.  Then, if they decide to eliminate this credit, do it slowly and phase it out over the next decade.  Georgia has a great business climate, in part because we don’t make knee-jerk regulations causing uncertainty and confusion in the marketplace.  Let’s not change that now.

I urge you to reach out to your legislator—now—before the session starts and communicate the value of the credit to our state and its citizens.