With automakers mounting a big push into electric vehicles, Rep. Jeff Duncan, R-S.C., is looking for ways to ensure people who switch from gasoline continue paying taxes for infrastructure upkeep.
The U.S. Energy Information Administration projects electric vehicles, or EVs, including battery electric and plug-in hybrid vehicles, will account for 19% of light-duty sales by 2050 compared to 4% in 2017. Globally, BP PLC expects the number of electric vehicles on the road to nearly double to 190 million by 2035.
"I can make the argument that there's not enough EVs on the road right now to have a dramatic impact," Duncan said March 7 at a hearing held by the Committee on Energy and Commerce's Subcommittee on Energy. However, "I think we need to prepare for their impact on the roads and bridges, and they ought to pay their fair share."
While electric utility companies collect taxes from ratepayers, "I don't see how that's translating to the infrastructure needs," Duncan added. "So I think that's something that Congress needs to work on."
One option could be charging electric-vehicle owners a registration fee to try to cover the cost of the gasoline tax they would avoid paying, said John Maples, a senior transportation analyst at the U.S. Energy Information Administration.
Electric future
Duncan also said the electric grid should be a "big part" of any infrastructure plan Congress pursues. "That's hardening, but that's also getting ready for the EVs of the future," he said.
At a high level, the impact of electric-vehicle adoption on the grid should be "manageable," though "local impacts could be substantial," said John Farrell, laboratory program manager for vehicle technologies at the National Renewable Energy Laboratory.
Electrifying the auto sector could provide a financial boost to utilities by increasing power demand. However, companies will need to find a way to spread out when people charge their vehicles so grid supply is not overly strained. Ideally, that charging would also coincide with the times of day when renewable power plants flood the grid with cheap electricity. Ill-timed spikes in demand have already caused problems for some grid operators, highlighting the potential cost to utilities and their customers of mismanaging electric vehicle adoption.
Electric vehicle advocates would like Congress to help fund charging infrastructure for electric vehicles. However, there are doubts about the funding plan proposed by the White House, which aims to generate at least $1.5 trillion in new investment over 10 years by providing $200 billion of federal seed money and streamlining regulatory reviews.
The White House proposal "is not one that will gain the immediate, robust engagement that a direct-investment, an Eisenhower-style investment would have gained," Sen. Jeff Merkley, D-Ore., said Feb. 27 at an event hosted by the Electric Drive Transportation Association.
Urgency
Lawmakers also may not feel pressured to move quickly on electric vehicles. Assuming more than 20% annual sales growth, battery-powered and plug-in hybrid vehicles would only account for approximately 10.5% of vehicles on the road in 2035, Fuels Institute Executive Director John Eichenberger told the House panel.
"I truly believe that electric vehicles will represent a majority of vehicles in the future," Eichenberger said. "[But] for the foreseeable future, the market's going to look remarkably similar to the market we have today, and the transition to something different will be measured and incremental."
Rep. Tim Walberg, R-Mich., said his state is "committed to internal combustion engines."
However, Detroit-based General Motors Co., which plans to roll out 20 new all-electric vehicle models by 2023, has committed itself to an "all-electric future," Chairwoman and CEO Mary Barra told financial analysts in October 2017.
"As we continue to make meaningful progress in lowering battery costs, we are confident that our next-generation EV architecture will be desirable, attainable and profitable, with a range that our customers want," Barra said on an earnings conference call Feb. 6.
Ford Motor Co., which is headquartered in Dearborn, Mich., has also made electric vehicles "a key part of our future," President and CEO James Hackett said Jan. 24 on an earnings conference call. Ford invested $11 billion to expand and accelerate its electric-vehicle plan, Hackett said.
"Today, U.S. companies are leading the way on EV technology. But without supportive policies, the U.S. will cede the field to economic competitors," Jeremy Martin, a senior scientist at the Union of Concerned Scientists, told lawmakers.
