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January 31, 2023 Property and Casualty News
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Georgia’s big bet on electric vehicle rollout rides heavily on state and federal backing

Griffin Daily News, The (GA)

Gov. Brian Kemp is on a mission to make Georgia the undisputed electric vehicle capital of the nation.

The Republican governor's ambitious plan doesn't seem too far-fetched after the significant strides made by the state on the economic development front in the last two years, which includes four multibillion-dollar investments into building electric vehicles and the batteries that keep them running.

The electric automobile industry reaches well beyond passenger cars, as Sysco plans to convert its fleet of 150 tractor trailers that deliver food to restaurants, schools and other commercial kitchens to electric power. And federal funding will enable BlueBird to produce electric powered school buses in Fort Valley.

Yet these developments are not without their detractors who criticize the state's generous incentive packages. For its proposed plant, Rivian Automotive received $1.5 billion in state and local incentives. Local residents have concerns about how the plant will contribute to urban sprawl, the traffic it would create and the environmental damage it could cause.

And a capacity problem could hamper the long-term viability of the electric vehicle industry: a shortage of lithium-ion batteries.

Although challenges lie ahead, Public Service Commissioner Tim Echols believes that the governor's prediction can come true with public and private investment into clean energy to increase electric vehicle suppliers that continue to deliver on the technology's promise. Georgia is currently behind California in the EV industry, he said.

Echols, who has owned six zero-emission cars over the years, was able to successfully press his PSC colleagues to triple Georgia Power's Make Ready Program's budget up to $53 million to apply toward upgrading charging stations over the next three years.

"If all of these suppliers around these EVs and others come in, I think we will be exactly what he predicted," he said. "Then it's simply about helping Georgians catch up to see that EVs are good for you and that these Ford F150s and these Rivain trucks can be used all over south Georgia.

"I think it may take a while to personally adopt it, but I do think it will eventually happen especially if all of this electric vehicle related businesses, buttering everybody's bread, so to speak, in terms of giving people jobs and providing all of this tax revenue, and the economic development," Echols ad

The electric automotive industry is expected to secure a front seat this Legislative session after a joint House and Senate study committee spent the offseason taking field trips to manufacturing sites and hearing from representatives from utility companies, state convenience store association, food service companies, automobile manufacturers and electric vehicle owners.

Committee members have compiled a 73-page report that can act as a guide for some of the proposed changes this year and in the near future.

One major obstacle is rolling out enough charging stations for people to quickly recharge their battery-powered cars in parking lots at hotels, restaurants, shopping malls and convenience stores.

Senate Majority Leader Steve Gooch said that while many electric vehicle owners will be able to charge their vehicle overnight at home, more chances need to be available for people driving from Atlanta to Savannah so they can recharge quickly during the four-hour drive.

A growing industry has also presented a number of challenges to state legislators and agency leaders this year, including the steep costs involved in building up charging stations for electric vehicles, the high annual fee Georgia now charges to EV owners, and the continuing costs to repair and build roads with shrinking fuel tax revenue.

In all the electric mobility industry will be responsible for 35 projects across Georgia to the tune of $23 billion dollars of investment in 28,000 new jobs.

"I believe this is a unique moment of opportunity for our state and for the thousands upon thousands of hardworking Georgians who will benefit from great jobs and incredible innovative companies for generations to come," Kemp said during his inaugural address. "That's why by the end of my second term as your governor, I intend for Georgia to be recognized as the electric mobility capital of America.

"To accomplish this goal, we are keeping our foot on the gas and I look forward to the announcements we'll make in the near future," Kemp said.

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