UPDATE | New Rulli bill would create ‘blueprint’ for EV growth in Ohio
State Sen. Mike Rulli of Salem, R-33rd, on Wednesday joined representatives of Clean Fuels Ohio and the Ohio Chamber of Commerce in announcing the “Accelerating Ohio’s Auto Industry” bill, intended to equip Ohio to capture some of the $330 billion worth of investments automakers are expected to make into electric vehicles in the next few years.
“We have to have a blueprint for Ohio that makes us different, that makes us the cutting-edge,” Rulli told reporters Wednesday.
The bill includes $15 million for traditional automakers to retool their factories in order to manufacture electric vehicles and $10 million in educational grants for institutions now developing the workforce for coming jobs in electric vehicles.
“I’ve seen the devastating impact of auto manufacturing leaving, and I don’t want it to continue,” Rulli is quoted in a news release. “Passage of this aggressive, multi-part legislative package is critical to provide resources and innovation to Voltage Valley and the rest of Ohio to grow our auto industry for future generations.”
The bill would also create a state task force of government and private sector experts to offer legislative guidance, and prepare the state for the $140 million in expected federal funding to expand its electric vehicle charging infrastructure. That panel is currently being finalized by Clean Fuels Ohio, Rulli told Mahoning Matters.
It would also provide the Public Utilities Commission of Ohio with new regulatory guidance for charging stations to “unlock much-needed investment,” said Brendan Kelley, director of Clean Fuels Ohio’s electric vehicle adoption initiative
“States that are leading electric vehicles — regulators have been very proactive when it comes to supporting investments in electric vehicle infrastructure,” he said. “The only programs for that in Ohio are pilot programs. Other states have moved past that.”
The bill also proposes sales tax exemptions for electric or hybrid vehicle buyers: $2,000 for all-electric vehicles leased or purchased new and $1,000 for the purchase or lease of either used electric vehicles or plug-in hybrid models.
Rulli said Wednesday he expects the incentives will encourage not just the average consumer to go electric, but also fleet buyers, the latter of whom are the target market for Lordstown Motors Corp.’s all-electric pickup truck, the Endurance, due out later this year.
“We want you to buy your fleet vehicle right here in Ohio,” he said.
The National Conference of State Legislatures reported in August that incentives like tax credits or rebates for electric vehicle purchases are available in 45 states and the District of Columbia. The conference reported Colorado offered a $4,000 tax credit through 2021 on light-duty electric vehicles — a category that would apply to Lordstown Motors’ Endurance.
Ohio, however, was one of the states without a sales incentive. It’s also one of 28 states to have a special fee for electric vehicle owners, to compensate for declining gas tax revenue. In July 2019, electric vehicle owners started paying $200 for annual registration.
Rulli and former Democratic state Sen. Sean O’Brien in 2020 introduced a bill creating vehicle sales tax incentives — $500 for personal use vehicles and $1,000 for up to 10 vehicles purchased by businesses. It had several hearings and supportive testimony in the Senate’s Ways and Means Committee, but never got a vote.
Steve Stivers, president and CEO of the Ohio Chamber of Commerce, said 17% of Ohio’s economy and 2% of its workforce — about 108,000 workers — are based in the automotive industry. He said automakers have pledged about $330 billion for electric vehicle manufacturing in the next few years.
Stivers said the new bill’s language is expected to be “technology neutral,” suggesting it would incorporate alternative fuel products, like the hydrogen-fueled vehicles being developed by Hyperion Motors, whose CEO is Warren native Angelo Kafantaris.
The company earlier this month announced it would move its global headquarters from California to a new $300 million facility in Columbus, the Associated Press reported.
Electric automaker Fisker Inc. announced Tuesday it’s accepting reservations for its all-electric compact electric vehicle dubbed PEAR, or Personal Electric Automotive Revolution, which will be manufactured at the former Lordstown Assembly Complex through an agreement with the plant’s incoming owner, Foxconn.
The vehicle is priced at $29,900 and is expected to be released in 2024.
“We want those investments — whether they’re hydrogen-based, EV-based. .... We want to make sure Ohio is the place for all innovation for clean fuel vehicles,” Stivers told reporters Wednesday.
Rulli told Mahoning Matters he expects to introduce the new bill in the next few days. It’s already been through several iterations, he said.
“We applaud Senator Rulli on his comprehensive approach to support this historic industry through its technology transition and working to capture the many investments being made by electric vehicle manufacturers and its supply chain,” Guy Coviello, president and CEO of the Youngstown/Warren Regional Chamber, is quoted in the release. “When passed, this legislation would help to sustain and grow Ohio’s economy for years to come.”
This story was originally published February 16, 2022 at 2:44 PM.