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The new year brought increased fees for EVs in North Carolina and Kentucky and new rules on what vehicles qualify for the $7,500 federal tax credit.


Registering an EV now will  cost $180 a year in North Carolina, a 28% increase. And EV owners in Kentucky will have to pay a $120 registration fee annually on top of the normal registration fees for all vehicles. In addition, public EV charging stations now must pay an additional 3 cents per kWh, with an additional 3 cent/kWh for chargers on state property.


The biggest change, of course, is the federal government’s new EV sourcing requirements: Only 19 EV and plug-in hybrid variations now qualify for the $7,500 tax credit, down from 43 last year. More than 7,000 auto dealers have signed up to issue the credits to buyers at the point-of-sale, a new option effective Jan. 1.


But some dealers continue to express misgivings over the shift to EVs. Clean car regulations approved by Delaware in November put much of the burden on dealers and car manufacturers for delivering an increasing number of EVs between 2026 and 2032. Even though some manufacturers already are shipping fewer gas-powered cars to the state, dealers say the demand for electric vehicles is lacking so far. In Texas, some dealers are complaining about surplus inventory and the time it takes to sell an EV because new customers have so many questions about the technology.

Meanwhile, tech writer and podcast host Paris Marx makes the case that America's EV plan was flawed from the start, saying that instead of seeing EVs as part of a plan for more sustainable transportation, the U.S. has treated EVs as a one-to-one replacement for gas guzzlers. That means emissions goals likely will be missed and other transportation woes will continue to be unaddressed.

We had several stories on the move to electrify the nation’s nearly 500,000 diesel-burning school buses, which Canary Media reports is off to a slow start despite billion-dollar subsidies.            


Part of the problem, according to an audit issued by the EPA’s Inspector General two days after Christmas is the dependence on utility companies' ability to increase power supplies. The report noted that charging sites for 25 or more buses often require a new transformer – equipment that currently is backlogged.

In a separate report released the same day, the Inspector General criticized EPA for failing to verify information submitted in applications for federal funding, which it said “led to third parties submitting applications on behalf of unwitting school districts, applicants not being forthright or transparent, entities self-certifying applications without having corroborating supporting documentation, and entities being awarded funds and violating program requirements.”


Among the leaders in the transition is California, where the state Energy Commission granted a $2.9 million award to a project to install 12 bidirectional chargers at four school locations, part of a plan to use school bus fleets to supply power during regional grid emergencies.


We normally focus on EV policy, rather than on manufacturers’ sales, but this story is worthy of note: China’s BYD overtook Tesla in EV sales in the fourth quarter of 2023, and Bloomberg Opinion columnist David Fickling says the company is either advancing on, or overtaking its American rival on almost every financial metric. Although BYD’s sales currently are mostly in China, its growth will be a story to watch.

All that and more in this week’s Intelligence Report:



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Electric Vehicles
Heavy-duty Trucks & Buses
Medium-duty Vehicles
Micromobility
Off-road Vehicles

 
 

Electric Vehicles

California

EIA: California continues to lead United States in electric vehicles and charging location growth

When 2022 closed out, the state accounted for 37% of all U.S. registered light-duty EVs and 27% of its charging locations. Energy Information Administration


U.S.

Analysis Finds U.S. Electric Vehicle Battery Manufacturing on Track to Meet Demand

EDF's analysis determined that more than 1,000 gigawatt hours per year of U.S. EV battery production capacity has already been announced to come online by 2028. That's the equivalent of what is needed to power 10 million electric cars. Environmental Defense Fund


Washington, D.C.

DC greenlights aggressive electric vehicle mandate despite critics sounding alarm on high consumer costs

The nation's capital is joining several states led by California in moving forward with an aggressive electric vehicle mandate, which experts and lawmakers have warned will lead to higher consumer costs. The Washington, D.C., Department of Energy and Environment announced recently that it had formally adopted the so-called Advanced Clean Cars II Rule crafted by California's state government. Under the regulations, automakers will be required to only sell zero-emissions vehicles beginning in 2035 in an effort to curb carbon emissions and fight global warming. Fox News


U.S.

Republican AGs, including Knudsen, sue Biden administration over vehicle emissions rule

Montana Attorney General Austin Knudsen and 20 other Republican state attorneys general have sued the Biden administration in an attempt to block a recently finalized federal rule that requires states to set targets to reduce greenhouse gas emissions from transportation in their states. Florida Phoenix


U.S.

Treasury says 7,400 dealers have signed up for electric vehicle tax credit

The Treasury Department estimates more than 7,000 auto dealers have registered to provide the new point-of-sale tax credit for purchase of an electric vehicle beginning Jan. 1. The Hill


U.S.

OPINION: Why America's Electric Car Push Isn't Working

America's EV plan was flawed from the start, writes tech writer and podcast host Paris Marx. Instead of seeing EVs as one piece of a plan for more sustainable transportation, America has focused on using EVs as a one-to-one replacement for gas guzzlers. But this one-size-fits-all solution fails to address our broader transportation problems, meaning emissions targets are likely to be missed and other transportation problems will continue to go unaddressed. Business Insider


U.S.

OPINION: Debunking A Biased Report On EV Subsidies

A report that criticizes electric vehicles was funded by fossil fuel companies and contains multiple inaccuracies, some of them based in avoiding innovation, writes CleanTechnica's Paul Fosse, a Tesla stock owner. CleanTechnica


U.S.

GM Offers $7,500 Incentive To Make Up for Lost EV Tax Credits From New US Rules

General Motors said it would offer $7,500 in incentives to buyers of electric vehicles that lost eligibility for tax credits due to new Treasury Department rules that took effect Jan. 1. No GM EVs other than the Chevy Bolt qualify for the $7,500 tax credit as of then because they contain components from countries on a list of banned sources. The automaker said it will be changing its sourcing so its vehicles will soon qualify for buyer tax credits under the new regulations. Investopedia


Texas

Texas car dealers hold the keys to electric vehicle adoption

Some dealerships have complained about surplus inventory in the face of less-than-expected demand growth. One expert said a primary dealer concern is the time it takes to sell an electric vehicle because new customers have so many questions about the new technology. The Dallas Morning News


Delaware

Delaware car dealers raise concerns about electric vehicle mandate

When the Delaware Department of Natural Resources and Environmental Control approved the clean car regulations in November, much of the burden was placed on dealers and car manufacturers, who will be tasked with delivering an increasing amount of electric vehicles to Delaware between 2026 and 2032. Even though some manufacturers are already shipping fewer gas-powered cars to Delaware, dealers say the demand for electric vehicles seems to be lacking so far. Delaware News Journal


Ohio

Ohio bans future bans of gas-powered vehicles, even though none have been proposed

Ohio Gov. Mike DeWine on Dec. 28 signed into law a measure to limit car emission standards and prevent cities from restricting new sales of gas-powered vehicles. The move to ban future bans of gas-powered vehicles comes amid a nationwide shift to electric vehicles in an effort to curb carbon emissions. These theoretical bans, however, may just be a paper tiger, as there have been no efforts by the state of Ohio -- or any city or town in it -- to restrict gas-powered vehicle sales. Spectrum News


North Carolina

Electric vehicle registration costs in North Carolina increased 28.3%

Electric vehicle registration costs in North Carolina increased 28.3% on Jan. 1, from $140.25 to $180 a year. The Center Square


Kentucky

Kentucky electric cars now pay two taxes where gas cars only pay one

First, EVs will have to pay an additional $120 registration fee every year, over and above the normal registration fees for all vehicles. On top of this, public EV charging stations now have to pay an additional 3 cents per kilowatt hour of electricity distributed, and an additional 3 cents for those chargers that are on state property. Electrek


Kansas

Kansas announces its first NEVI EV charging station locations

President Joe Biden's National Electric Vehicle Infrastructure Formula Program has awarded Kansas $39.5 million to open EV charging stations -- and the state just funded its first six. Gov. Laura Kelly announced that more than $4.6 million in federal funds will be spent on six locations selected for Kansas' NEVI Formula program. The chosen locations will fill gaps in EV charging stations along the state's major highways and interstate system. Electrek


International

OPINION: BYD Overtakes Tesla Sales, Has World in Sight

The Chinese Buffett-backed EV maker is on the cusp of joining the ranks of formerly obscure car brands that conquered the world, writes Bloomberg Opinion columnist David Fickling. Bloomberg


International

Electric Cars Powered By Sodium Ion Batteries Go On Sale In China

CleanTechnica


Which EVs qualify for a $7500 tax credit in 2024? See the updated list.

Just 19 different electric vehicle and plug-in hybrid variations qualify for tax credits in 2024, down from 43 last year. USA Today


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Heavy-duty Trucks & Buses

California

California Energy Commission Awards $2.9 Million Grant for Electric School Bus Bidirectional Charging Infrastructure

The California Energy Commission, through its Clean Transportation Program, has granted a $2.9 million award to a project team led by The Mobility House to implement 12 bidirectional chargers at four California school locations. The project, termed "Replicable V2X Deployment For Schools," will use school bus fleets to mitigate regional grid emergencies -- especially during peak summertime windows. Business Wire


California

California Pushes Electric Trucks as the Future of Freight

California's Air Resources Board said it will wait for EPA approval before enforcing a rule barring diesel rigs from moving goods in and out of state ports. The New York Times


U.S.

Inspector general criticizes EPA's failure to verify information submitted in applications for federal funding for electric school buses

The Inspector General criticized EPA for failing to verify information submitted in applications for federal funding, which it said "led to third parties submitting applications on behalf of unwitting school districts, applicants not being forthright or transparent, entities self-certifying applications without having corroborating supporting documentation, and entities being awarded funds and violating program requirements." EPA Inspector General


U.S.

Inspector general report casts doubt on Biden's ambitious electric bus program; delays could last years

President Biden's plans to accelerate the adoption of electric school buses could be slowed by the dependence on utility companies' ability to increase power supplies. Charging sites for 25 or more buses often require a new transformer - equipment that currently is backlogged. EPA Inspector General


U.S.

U.S. Engine Maker Will Pay $1.6 Billion to Settle Claims of Emissions Cheating

The United States and the state of California have reached an agreement in principle with the truck engine manufacturer Cummins on a $1.6 billion penalty to settle claims that the company violated the Clean Air Act by installing devices to defeat emissions controls on hundreds of thousands of engines, the Justice Department announced. The New York Times


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Medium-duty Vehicles

U.S.

EV school bus rollout off to slow start despite billion-dollar subsidies

Some U.S. school districts face a learning curve in ditching their dirty diesel buses. But the challenges are solvable. Canary Media


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Micromobility

Virginia

Va. city is exploring e-bike incentives. Could a statewide program be next?

With the release of a report by Alexandria city officials last month indicating the city's intent to launch its own e-bike rebate program this coming summer, the wave of e-bike incentives may finally be reaching Virginia. If a statewide e-bike voucher bill from Del. Josh Thomas, D-Gainesville, survives the upcoming General Assembly session, the two-wheeled revolution may sweep across the entire commonwealth, writes transportation reporter Wyatt Gordon. Virginia Mercury


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Off-road Vehicles

U.S.

A Tesla Cofounder Is Electrifying Off-Road Vehicles, Starting With Dirty Lawn Mowers

Ian Wright, a Tesla cofounder who left the carmaker long before Elon Musk became CEO, wants to revolutionize different kinds of electric vehicles. Instead of new battery-powered cars and SUVs, he's working to create off-road work vehicles -- think lawnmowers, ATVs and tractors -- that don't spew dirty exhaust and carbon dioxide. The first product is a commercial-grade electric mower that's arriving just as California moves to ban sales of all new gas-powered mowers. Forbes


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