The Oregon legislature has the opportunity to boost electric vehicle sales in the state and deliver benefits to all Oregonians by passing pending legislation for electric vehicle incentives in House Bill 2704.
Electric vehicles (EVs) are a critical solution to cutting oil use, improving air quality, and reducing global warming pollution. EVs are also a better choice for many Oregon drivers, offering fuel savings and often a better driving experience compared to a gasoline car.
Driving on electricity is cheaper than driving on gasoline for most people, even with today’s lower gasoline prices. Based on Northwest gasoline prices in 2016, we found that driving the average new gasoline car (29 mpg) for a year (11,350 miles) cost $949 in Oregon. Driving that same distance on electricity cost an average of $363 in the state.*
Given the volatility of gasoline prices, using electricity as a fuel also means more stable and predictable refueling costs for the years ahead. And since Oregon lacks oil production and refining, switching away from petroleum can keep more money in the local economy.
EVs in Oregon also have environmental benefits. The average EV on Oregon’s electric power mix produces fewer global warming emissions than any gasoline-powered vehicles on the road—equivalent to a 75 mpg gasoline car, according to UCS analysis in 2015. As Oregon continues to transition to cleaner sources of electricity (thanks to last year’s coal to clean bill) the climate advantages of EVs will only increase.
Despite these advantages, EVs still face barriers to their adoption, so policies are needed to make EVs available and affordable for more average Oregonians. A consumer incentive for zero-emission and plug-in hybrid electric vehicles, as proposed by HB 2704, will help motivate prospective car buyers to investigate electric drive options and is also an important signal from the state in support of needed technologies.
States with EV incentives lead the nation in EV sales. For example, in California, more than 90 percent of surveyed EV rebate recipients said that the state’s rebate was important to their decision to buy an EV.
Now is an important time for Oregon to make a commitment to building a mainstream market for EVs. As the Oregon Global Warming Commission report to the legislature showed, Oregon is falling behind on its commitments to cut GHG emissions in large part because of increasing transportation sector emissions.
Thanks to Oregon’s Zero Emission Vehicle program, manufacturers are required to sell EVs in Oregon. This policy that helps ensure EVs are available should be matched with policies that help induce demand. A consumer incentive is the single biggest act Oregon can take to enable more drivers to choose an electric car, so passing HB 2704 is an important step forward for EVs in the state.
*We calculated prices using the following electricity and gasoline price data from the US Energy Information Agency: 2016 average residential electricity price $0.107/kWh, 2016 average gasoline price $2.40/gallon. Costs assume 11,350 annual miles driven, 28.6 MPG gasoline efficiency, 0.30 kWh/mile EV efficiency.