Tuesday, February 1, 2011

Who should pay for electric vehicle recharging stations?

As more makes and models of all-electric vehicle
start showing up in auto showrooms, a big question
in a potential buyer's mind will be:
Where can charge up if my car if it starts running low on energy and  I'm not close enough to plug it into my home charging system? 
A secondary question that consumers likely have
not considered--but eventually will--is:
Who should pay for the installation of those away-from-home recharging stations?
 New Jersey Assemblyman Josephs Cryan wants
to save you the trouble of having your nice new car towed home when it runs out of electrons. He's introduced several bills aimed at encouraging-- and compelling--the installation of charging systems at away-from-home locations.

On Thursday, Feb. 3, 2011, when the New Jersey Assembly Appropriations Committee considers the bills, it's likely that the second question will be on the minds--and lips--of lobbyists who represent the entities that would be required to pay for the installations.

The Senator's first bill, A-3647, puts that obligation (and cost) on the owners of  newly 
developed shopping centers. To make sure the job gets done, A-3649 would prohibit the 
state Department of Environmental Protection from issuing permits to new shopping centers
that do not provide charging stations. Also shouldering the cost of the charging stations 
would be businesses that operate service stations on the state's toll roads (A-3648)
  
That's the "stick" side of the senator's bill package. On the "carrot" side, he's introduced:     
   
A-3650  and A-3651 which provides a corporate business tax credit and gross income tax deduction for the purchase and installation of vehicle charging stations for electric vehicles--and hybrid electric vehicles.

The committee debate should be interesting.  You can listen to it live (or later) via the Legislature's web site.


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4 comments:

  1. If I were a major shopping center (or retail chain) serving upscale clients I would be the first in line to make EV charging stations available at my locations. Think about the people you know who drive already drive hybrid vehicles: upscale, brand conscious, early adopters willing to pay a premium for a product that aligns with their values. Why would any "stick" be needed with "carrots" like these?

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  2. Which raises the question of why the Legislature would want to intervene in an area where market forces likely will supply a solution.

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  3. Very interesting topic, Frank.

    When cars were first manufactured, before there were roads, the Ford Motor Company built some highways and service stations to give people a place to drive. The first road from Chicago to St. Louis was built by Ford if I properly recall.

    The difference that I see here is that the roads would be used by any motorized, wheeled vehicle. Nothing specific to the technology. But now we have ethanol vehicles, electric vehicles, and who knows what is next down the road. Each has its own infrastructure requirements. Illinois gave subsidies to a number of ethanol related production facilities and this hasn't gone very far.

    In my real estate development work, I was approached by providers of car charging stations who wanted to sell us the ability to install their system. In exchange for buying the box and installing it (on its own dedicated circuit with new conduit beneath the concrete deck) we would get a cut of the electricity sales. Hardly a compelling argument.

    Until there is a reasonably low cost method of installing these boxes, it'll just be another toll on the developer, which moves to higher rents, unleased spaces, and higher consumer costs.

    Does anyone know if GM or Nissan have an inexpensive charging station?

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  4. In theory, some Federal courts have already agreed that the government cannot legally force taxpayers to buy something (medical/heath insurance) involuntarily from a private vendor (insurors). On the other hand, the DMV of every state has been doing this for decades (auto operators and owner's liability insurances.)
    Forcing ratepayers in general to each pay additionally for a distribution center that might serve a very limited market (e-car owners & operators) seems unnecessary and inappropriate, although I am sure there are some bleeding heart judges who would find it in the public interest, although I don't think any of them have made it to the Supreme Court yet.

    I suggest the electric power producer would need to pay for the full cost as a cost of business necessary to build a new market that does not yet exist. However, some entrepreneurs might want to establish the service as a point of entry to ultimately capture the inevitable battery replacement business.

    Will AAA carry replacement battery packs for roadside service? Should these be subsidized by all AAA members or only by the AAA-E members?

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