Vehicles not yet a state priority
The Denver Post
Ready or not — the electric vehicle revolution is here.
That’s the key takeaway from auto manufacturers, that — propelled in part by governmental pressure across the globe to boost fuel efficiency and cut back on pollution — are now investing heavily in electric drivetrains, with one foreign automaker, Volvo, planning to drop out of the gasoline-powered market entirely as soon as next year. One industry forecast from Bloomberg New Energy Finance found that electric cars could be as cheap as their traditional counterparts by 2025 — and could overtake them in sales by 2038.
So whether Colorado has nearly 1 million electric cars by 2030, as Gov. John Hickenlooper has proposed, or merely a few hundred thousand, electric vehicles are primed to multiply. And that’s going to change not only how we use our roads, but also how we pay for them.
So far, though — even as lawmakers have named transportation a top priority for two years running — the issues surrounding electric vehicles haven’t yet risen to the forefront of the political debate at the state Capitol.
“This stuff feels like it’s decades away, but it’s right around the corner,” said Rep. Jeff Bridges, D-Greenwood Village.
“We’re looking at the end of the internal combustion engine — and not because electric cars are better for the environment, but because they’re becoming cheaper to build, sell and operate.”
Hickenlooper’s electric vehicle plan — unveiled last month — calls for significant policy changes to support the coming trend. He wants to boost funding to build out Colorado’s network of charging stations, buy more electric-powered buses and push public and private employers to make charging ports available for workers. Meanwhile, the Colorado Department of Transportation has begun experimenting with ways to charge motorists by how far they drive, rather than how much gas they use.
But the plan’s implementation is far from guaranteed. Hickenlooper leaves office at the end of the year, and it’s not at all clear whether his predecessor — or lawmakers — will pick up where he left off.
For the state government, the most serious effect of the electric conversion is one that’s already happening.
The 22-cent-per-gallon state gas tax is the main funding source for Colorado’s roads. But it hasn’t been increased since 1991, and inflation coupled with rising fuel efficiency have steadily eroded its value.
“The funding dilemma, how urgent is that?” said Tim Kirby, manager of regional planning for CDOT. “I would say we’re in it today. We’re in what I call a perfect storm.” Colorado’s population is growing, even as inflation and a drop in gas consumption eat away at revenue.
Add more electric cars to the road, and the diminishing returns get even worse. Drivers of electric vehicles pay a $50 annual fee, but not all of it goes toward road upkeep. And they don’t pay gas taxes at all; the fee’s not enough to make up the difference.
Meanwhile, the state for years has been actively incentivizing people to buy electric, offering tax credits toward the purchase of a new vehicle. Describing it as a luxury the state can’t afford, Republicans are looking to eliminate that tax credit before it expires in 2022, and redirect the money toward roads.
“Consumer demand is cropping up — I think we’ve done our job as far as subsidizing these vehicles,” said Rep. Lori Saine, a Weld County Republican and a sponsor of Senate Bill 47.
Repealing the tax credit would raise $50 million over the next three years. But it’s unlikely to pass the House of Representatives, where majority Democrats view the subsidies as a way of speeding the adoption of more environmentally friendly cars.
As for the long-term conundrum of how to replace the gas tax? CDOT’s experimenting with charging people by how many miles they drive, through a plug-in device that tracks their car’s movements. But such a system raises privacy concerns. Democrats last year floated a sales tax hike to fund transportation — but that was meant to supplement, not replace fading gas revenues.
Senate Majority Leader Chris Holbert, R-Parker, isn’t sure what the answer is. Like most Republicans, he opposes a tax hike. But he would support replacing the gas tax with a new funding mechanism that would be revenue-neutral in the first year, while stopping the bleeding in the future.
“If the diminishing return accelerates — becomes more dramatic — we’re going to be in a jam,” Holbert said.
While the gas tax conversation may still be in its infancy, policymakers are pushing forward with other ideas.
The House of Representatives last week passed a bill to require builders to offer homebuyers the option of installing the wiring needed to charge electric vehicles — similar to an existing requirement that they offer pre-wiring for solar panels.
Rep. Mike Weissman, DAurora, said he proposed House Bill 1107 because it’s cheaper to install wiring while a home’s being built than to retrofit later. That bill passed the Democraticled House this week, largely along party lines. But despite being co-sponsored by a Republican, it could face an uphill battle in the GOP-led Senate to become law.
And home charging is just one piece of the broader need. One key barrier to more people making the leap to electric is what’s known as “range anxiety” — the fear of running out of power far from home with no charging stations nearby.
“I think there’s a role for private companies in that,” Weissman said. “There’s a role for the state in that, a role for local government, a role for utilities.”
Advocates of electric vehicles, such as environmental group Conservation Colorado, cheered Hickenlooper’s plan when it was released — but they also want to see specific policies implemented to meet the ambitious goals that were outlined.
“I think they’re taking the steps — it’s just a matter of not letting up on the proverbial gas pedal,” said Sophia Guerrero-Murphy, the group’s energy and transportation advocate.
But throw in the uncertainty of self-driving cars, and some lawmakers aren’t sure Colorado policymakers are truly ready for the changes ahead.
“We’re not having the conversation in a way that we need to be having it,” said Bridges, the Democratic lawmaker. “And the impact that this will have on Coloradans will be huge, it will be sudden, and we need to do more to make sure that our state’s prepared.”