Sen. Michael Rulli (R-OH) shared broad legislation Wednesday aimed at bolstering the state's electric vehicle industry and drawing in millions in investments from automakers. The Salem Republican called the forthcoming bill "aggressive" given its total cost, which is expected to be at least $25 million.
The joint sponsor and supporters noted the investment is viable provided it assists the state in capturing any portion of the $330 billion automakers have pledged to invest in EV production by 2025.
"The ugly truth in America is we have no infrastructure for the EV revolution and that needs to change right here in Ohio," Sen. Rulli said at a news conference. "We could be on the cutting edge of it."
Steve Stivers, President and CEO of the Ohio Chamber of Commerce, noted the legislation will provide a “technologically-neutral” approach to boosting alternative fuel vehicles and place Ohio at a competitive advantage against other states.
"When you look at the capital investment we're going to make and the big private capital investment that's coming here, it's a no-brainer to spend $15 million to get, say, $1 billion or $2 billion or $5 billion," Mr. Stivers said. "It's a smart move on our part. This is good business."
Most of the proposal's spending comes from factory re-tooling efforts and workforce development investments, including $15 million in incentive grants funding for transitioning to EV production facilities.
An additional $10 million in grant funding is proposed for community colleges, vocational tech centers and trade schools for the purchase of new curriculum and equipment, scholarship, and tuition assistance and more.
A series of proposed sales tax exemptions are designed to encourage adoption of EVs in the MSRP range of less than $55,000 for sedans and $80,000 for vans, pickup trucks, and SUVs. The exemptions would be up to $2,000 for new all-electric vehicles, and up to $1,000 for new plug-in hybrids or used all-electric vehicles.
Other provisions include creation of a state task force of lawmakers, agency representatives and public/private stakeholders to develop a statewide electrification plan and a regular review of incentive levels, charging infrastructure, the supply chain, and other issues.
Sen. Rulli envisions a panel taking a lead role in the conversation about how to best spend the $20 million in federal funding coming this year to build out EV charging networks through the Infrastructure Investment and Jobs Act.
"So, when the federal money is going to be coming our way, they're going to have the means, the knowledge, the intelligence to actually work with the Statehouse and make sure everything is implemented on a very fast-moving pace," Sen. Rulli said.
The proposal also updates utility laws and provides more regulatory certainty over system upgrade costs.
Other groups joining to support the measure include Clean Fuels Ohio and the Ohio Automobile Dealers Association.
"We have a historic strength in this industry and the industry is changing globally," Clean Fuels Drive Electric Ohio Director Brendan Kelley said. "So, we need to position Ohio in the proper policy framework to make sure that we protect and grow this industry."
John Walsh, CEO of Ottawa-based electric vehicle company Endera, called the plan catalytic and said Ohio has an "incredibly competitive advantage" in when it comes to commercial fleets.
"That's why we need to foster that industrial base," he said. "We don't want Ohio to be left behind because they currently have been a leader historically."
Ohio's automotive industry represents 17% of the state's economy and about 108,000 direct workers, Mr. Stivers said.
As carmakers increasingly lay out targets to boost EV productions, Mr. Stiver said: "We want those new investments in Ohio. That is what Sen. Rulli's bill is going to do."
Aside from the senator's proposal, two House Democrats on Tuesday touted their plan to cut fees for EVs and hybrid vehicles by half.
