By MICHAEL A. SMITH
Insight Kansas
Currently (excuse the pun), electric vehicles make up only about 1% of the car and light truck market in Kansas–but that will change. Even the climate denialism of President-elect Trump cannot stop it. His newfound friendship with Tesla CEO Elon Musk is sure to keep EV sales strong. Besides, a new Panasonic EV battery factory being built in DeSoto received the largest state tax incentive package in Kansas history– $2.5 billion.
EVs are not perfect. They are expensive. It takes longer to charge an EV battery than to fill a gas tank, and that’s assuming that high-capacity chargers are available. These tend to be found only along interstates and in urban areas. EV motors and batteries require precious metals, the mining of which can lead to environmental degradation and abuse of workers. Finally, their unique combination of metals can burn differently than other materials, presenting new challenges to firefighters and other first responders
That said, EVs are still much better for the environment. They require no petroleum fuels, and the carbon footprint of generating their electricity is just a fraction of the tailpipe emissions generated by internal combustion engines. EVs also save the environmental cost of oil drilling, refining and shipping. Many EV drivers recharge the vehicles overnight at home. This leads to more consistent electricity generation throughout the day, which brings greater efficiencies at the power plant. The electricity can also be generated through cleaner sources such as wind and solar. Recharging EV batteries costs only about a third the price of refueling a gas tank.
For Kansas, several policy challenges await. Like most states, Kansas funds the state’s roads and highways primarily with motor fuel taxes on gasoline and diesel, which in turns leverage federal matching funds, also generated with motor fuel taxes. EV drivers do not pay these taxes. Kansas joins many other states in levying additional registration fees on EVs, but at $20-$30 per year, they do not replace the revenue generated by the average car or light truck in Kansas: over $110 annually in state taxes alone.
Some states have gotten creative. Oregon’s experimental OReGO plan uses monitors to assess how many miles a driver puts on their car each year, and levies a per-mile tax. Yet the idea of the state monitoring our driving habits is sure to rankle Kansas’ libertarian sensibilities. Even Oregon made the program voluntary. OReGO will probably be a no-go around here.
In a classic example of steering a straight course in all directions, the federal government and many states also offer tax credits for the purchase of EVs, due to their environmental benefits. A recent Kansas Reflector article noted that these credits were sharply restricted for EVs in Kansas several years ago. However, the federal credit is still in effect.
Other EV challenges include new training for firefighters. Notwithstanding the recent, viral, debunked “Tesla fires” social media post, EVs’ unique materials present some challenges to first responders, including those working along highways and near battery factories.
As for Tesla, they no longer own the market for EVs but they are still a major player. Kansas’ auto dealership licensing laws currently prohibit Tesla’s direct-to-consumer sales, but this may be the year that the legislature updates those laws. Right now, the closest place for most Kansans to test drive and service Teslas is Kansas City, MO.
EVs’ popularity continues to grow. Conspiracy theories and culture warriors notwithstanding, it is time for Kansas legislators to make the law more… well, current.