By EC Policy Manager Celia Kosinski
Florida’s electric vehicle (EV) market stands out as a beacon of progress, leading the Southeast and ranking second in the nation in registrations. This success is propelled by strong commitments from major auto manufacturers and dedicated federal funding, promising a cleaner, more energy-secure transportation future. Yet, amidst this rapid evolution, legislative challenges appear significant as Florida strives to shape policies that accommodate the dynamic EV landscape.
Several key bills concerning transportation electrification took center stage during the 2024 legislative session, which concluded on March 8.
Energy Resources Bill (House Bill 1645)
HB 1645, a comprehensive energy bill, passed both houses of the Florida Legislature and awaits Governor DeSantis’s signature. This bill has undergone several amendments, with some notably favorable and several less favorable to the EV community.
On a positive front, the bill introduces utility programs for residential EV charging, potentially incentivizing EV adoption among homeowners and businesses. This allows the Florida Public Service Commission (PSC) to approve residential EV charging programs only if they do not adversely affect ratepayers, requiring revenue earned from them to be dispersed among ratepayers. According to a study on how EVs affect electricity rates, EV utility programs support lowering rates across all ratepayers, as they contribute much more to utility revenue than costs.
Of greatest concern to the EC, and a quarter-billion-dollar loss to Florida, HB 1645 eliminates fuel efficiency as a consideration for state vehicle procurement. This risks discouraging the adoption of EVs within state agencies, hindering progress toward state fleet electrification. SB 284, a bill from last session requiring the state to use a total cost of ownership (TCO) approach, had bipartisan support but was vetoed by the governor, despite a study that shows shifting to EVs for state fleet use could save the state as much as $277 million in taxpayer funds.
Further, the bill proposed imposing a substantial battery deposit on EVs, requiring the Department of Highway Safety and Motor Vehicles to collect deposits on batteries from car dealers or repair shops that sell batteries. In the unlikely event that the battery catches on fire, the responding fire department would keep the deposit. The EC opposed this provision as it would add additional costs on EVs without demonstrable need and a potential deterrent to prospective EV buyers, stifling market growth. Fortunately, the provision was removed.
Department of Agriculture and Consumer Services Bill Package (Senate Bill 1084)
SB 1084, the Department of Agriculture and Consumer Services (DACS) package bill, includes a portion that preempts local governments from enacting or enforcing ordinances or regulations related to EV charging stations, which also passed both houses and awaits the governor’s signature. While the aim may be to streamline regulations and promote uniformity, this preemption could stifle local innovation and hinder municipalities’ ability to address unique challenges and opportunities related to EV infrastructure and encourage local policies such as EV make-ready ordinances, building code requirements for EV charging stations, and overall transportation electrification goals. Lastly, the bill would remove limitations on which DACS can issue regulations, which could lead to uncertainty regarding oversight and standards for EV charging stations.Summary
Florida’s recent legislative landscape regarding EVs presents a mix of opportunities and challenges. While certain bills aim to promote EV adoption and infrastructure development, others raise concerns about potential barriers and unintended consequences. Moving forward, it will be crucial for policymakers to strike a balance between fostering innovation, addressing revenue shortfalls, and ensuring equitable access to sustainable transportation solutions.
In the pursuit of national and economic security, the transition to EVs is a strategic imperative. By reducing our reliance on oil for transportation and bolstering national security, EVs pave the way toward a more resilient and sustainable future.
Governments, businesses, and individuals must collaborate to accelerate the adoption of EVs through policy support, investment in infrastructure, and incentives for consumers. Promoting domestic EV production and innovation contributes to technological leadership, ensuring that nations remain at the forefront of the rapidly evolving automotive industry. Together, we can electrify our roads, reduce our dependence on fossil fuels, and safeguard the prosperity and security of future generations.