A Trio Of Legislation Looks To Electrify Virginia’s Transportation Sector

Virginia committed to eliminating the state’s carbon emissions by 2045 with the enactment of the Clean Economy Act in 2020. There’s a lot of progress to be made over the course of the next 24 years; the General Assembly has taken a number of steps to bring the state toward this goal, such as by requiring public utilities to adopt renewable energy and ending tax coal credits. These are definitely steps in the right direction, but addressing carbon emissions from vehicles is key to eliminating carbon emissions in Virginia. 

Transportation accounted for 47.49% of Virginian carbon emissions in 2017, according to data from the Energy Information Administration. With more carbon emissions coming from transportation than any other sector in the state, changes clearly need to be made to Virginia’s transportation sector in order to achieve the goals laid out in the Clean Economy Act.

The widespread use of electric vehicles is one way to reduce carbon emissions from the transportation sector. The General Assembly passed a trio of bills this year that look to jump-start the adoption of electric vehicles in Virginia. HB 1965 requires that, starting in 2025, a certain percentage of vehicles sold in the state need to be either electric or hybrid. Another bill, HB 1979, provides those purchasing electric vehicles with a $2,500 rebate and looks to raise awareness about electric vehicles. Finally, HB 2282 tasks the State Corporation Commission — a regulatory agency which oversees public utilities and other state business and economic interests — with submitting a report to the General Assembly on how Virginia can accelerate transportation electrification. 

Around eight percent of vehicles sold in Virginia starting in 2025 will be either electric or hybrid, thanks to the enactment of HB 1965. The Commonwealth Transportation Board, which regulates and funds transportation in Virginia, has estimated that nearly half of vehicles being sold in 2040 will be electric. This legislation helps get to that point. And since the lifetime cost of owning a zero-emissions or low-emissions vehicle is about $1,000 cheaper than owning a gas-powered vehicle, this law will also help Virginians save money. 

The biggest barrier standing in the way of consumers wishing to adopt electric vehicles is the initial cost of the vehicle. Over 40% of respondents to a 2019 survey cited expensive price tags as preventing them from purchasing an electric vehicle. HB 1979 looks to address this. 

Starting in 2022, a Virginia resident who purchases a new electric vehicle will be eligible for a $2,500 rebate at the time of purchase. And as long as the buyer’s income is less than 300% of current poverty guidelines, the buyer will also be eligible for an additional $2,000 rebate. The rules are the same for those purchasing a used electric vehicle, so long as the used vehicle costs less than $25,000. 

The benefits to the consumer are clear, but car dealers need not worry. Under the law, the participating dealer will be reimbursed by the Department of Mines, Minerals, and Energy for each eligible rebate. 

In order to promote the adoption of electric vehicles, HB 1979 also establishes the Electric Vehicle Rebate Program Advisory Council, which is tasked with assessing the effectiveness of the rebate and with increasing awareness of electric vehicles among the public. 

HB 1979 includes a sunset provision for January 1, 2027, which is the year electric vehicles are expected to cost the same as gas-powered vehicles. But until that point, the legislation will certainly help expand consumer access to electric vehicles.  

While the focus of HB 2282 is to promote the electrification of transportation, the law makes clear Virginia’s plans to reduce dependence on non-renewable resources, improve air quality and public health, and reduce fueling costs. In attempting to achieve these ambitions, the law directs the SCC to submit a report to the General Assembly by May 1, 2022 recommending policy proposals that could guide public utilities toward accelerating widespread transportation electrification. 

The law specifies that the SCC should specify in its report where public utilities and other public investments can best complement private efforts to develop electric vehicle charging infrastructure. A particular emphasis will be placed on low-income, minority, and rural communities. The report will also detail how public utilities can support the electrification of public transportation. 

With half of vehicle sales in the state likely to be comprised of electric vehicles in the next twenty years, electric vehicles will be all over the roads in Virginia. The three laws described above provide incentives to consumers to get to that point while also ensuring that the infrastructure is in place to make Virginia’s carbon neutralization goals a reality.