As our legislature turns its attention to transportation, roads and transit—what pundits say will be the key issue at the General Assembly—some are taking aim at the electric car bonanza going on in our state.  Georgia is second only to California in electric vehicles, but if we are not careful, that silver medal is about to be ripped from necks.

Hawkish legislators led by Rep. Chuck Martin (R-Alpharetta) feel that Georgia’s $5000 per vehicle state tax credit is simply too generous. In the 2014 Georgia General Assembly, Martin’s bill to drastically cut the tax credit for these cars passed the House of Representatives only to die in the Senate on their very last legislative day.  Rep. Martin plans to reintroduce a “kinder and gentler” version of his bill this year.  After all, he says, the state has granted about $22 million in credits to Georgia tax payers who have purchased or leased these cars. 

Meanwhile, Atlanta has become the #1 market for Nissan’s LEAF—their small compact electric car. Besides Nissan and the people who get the credit, how has Georgia benefited?  Is there any betterment to the state and its economy with 10,000 electric cars scooting around the metro area?

Benefit #1—Pure Electrics Leave money in state. According to the Georgia Department of Economic Development, for every one percent of petroleum-based miles travelled in GA that is displaced by electric vehicles, approximately $201 million dollars will remain in the state of Georgia annually.  Each pure electric vehicle purchased keeps $2,242 annually in the state of Georgia by fueling with electricity rather than petroleum-based products.  For a state without a single oil well or refinery, this is huge.

Benefit #2—Tax Credit is spent in Georgia. Remember that the person who buys or leases one of these cars take some risks because an electric car has many limitations.  I know this from personal experience. The tax credit they receive after they file their taxes has proven to be an effective incentive at getting Georgians to take a chance anyway.  But when they get that $5000 back after filing their taxes, they often spend it on consumer goods, home improvement projects, a vacation, college tuition, or just put the money in the bank for a rainy day.  Folks spending money helps our local businesses.  

Benefit #3—the metro Atlanta air quality. The annual emissions test that your car or truck undergoes makes sure that your pollution controls are working to specifications.  Electric vehicles have no tailpipe and therefore zero emissions. Yes, they may derive their power from coal or natural gas—whatever power plant that is generating the electricity.  Even then, in order for a traditional gasoline car to pollute less than what it took to power that EV in Georgia, one would have to average 46 miles-per-gallon, according to a study by the Union of Concerned Scientists. In the Pacific Northwest, gas cars would need to average a whopping 73 mpg to equal the electric vehicle. 

Benefit #4—reduced use of electricity.  A study by Georgia Power shows that people who have electric cars lower their overall energy bill despite using electricity to charge their car.  The power company’s has a special “rate” to encourage people to get electric vehicles and charge them overnight—when power is super cheap and plentiful.  According to a study of 1000 of these Georgia electric car owners, it is working.  These customers reduced their annual bill by $180—even though they charged their car and didn’t buy gasoline for the entire year.   By shifting when they use their energy, it helps lower peak demand and that saves all of us money. So not only are the cars not producing any greenhouse gases, but the entire household is cutting their energy usage and saving dollars.  That energy efficiency saving is being “purchased” now through the tax credit given to electric car owners, and will save us money as we try to comply with the forthcoming EPA rule next summer which people have heard so much about. 

Benefit #5—the millennial magnet. Electric cars send a message to young people. As I sat recently with Mayor Reed discussing Atlanta’s success with electric cars, I asked him what he thought was the greatest benefit our region has received from the $22 million invested through state tax credits thus far. He didn’t hesitate.  He said it has sent a strong message to millennials about our priorities. “Millenials care about the environment—an essential characteristic for our city,” he said. “In order for Atlanta to maintain domination in the southeast, we have to continue to attract millennials.” This investment, he further explained, makes Atlanta a more livable city where people, and companies, increasingly want to be.  He likened our EV and associated infrastructure to the Beltline and other quality of life projects that are drawing talented young people back into the city to live and work.  As an Atlanta native, I can get excited about that.

Nissan is having great success with the LEAF and Georgia is the 2nd largest market in the U.S. for all EVs. Our current credit benefits only pure electric cars, but voices throughout the state are urging lawmakers to include plug-in hybrid electric vehicles (PHEV) as well—which would include a version of the Ford CMAX, Toyota Prius and even Porsche Panamera. This would enable the entire State of Georgia to move to a larger selection of electric vehicles since PHEVs permit both extended range battery electric driving and inter-city travel within Georgia, while significantly contributing to reducing CO2 and other emissions.  

And maybe with a little luck, we can take away California’s dominance in the EV market the same way we have been luring movie-makers to the peach state.    

Tim Echols regulates energy on the Georgia Public Service Commission and leases a Nissan LEAF. He created the Alternative Fueled Vehicle Roadshow in 2011 that travels the state each summer showcasing alternative fuels.