This commentary is written by Robb Kidd, the Sierra Club Vermont Conservation Program Manager, and Darren Springer, general manager of Burlington Electric Department. Burlington Electric Department and Sierra Club have previously collaborated to promote electric vehicles. Originally published in Vermont Digger 4/9/24.
In March of 2024, the Environmental Protection Agency (EPA) announced a final rule for vehicle emissions for the years 2027-2032 that will avoid 7 billion tons of greenhouse gas emissions from cars and light-duty trucks on our roads, while providing many billions of dollars in savings to consumers and to our public health. These new EPA standards will help accelerate the ongoing switch from gasoline-powered vehicles to electric vehicles (EV) and plug-in hybrids. It’s true that in some places conservation groups and regulated electric utilities don’t always agree on issues, but here in Vermont Sierra Club and Burlington Electric are in agreement: EPA’s new rules are good for the planet and good for Vermont.
It should come as no surprise, however, that oil companies are actively opposing the new EPA safeguards, launching a 7-figure advertising campaign against it. Fossil fuel interests are trying to portray the EPA rule as a ban on conventional gasoline vehicles. The rule itself is not a ban at all, but rather requires greenhouse gas emissions reductions, which automakers can meet through a variety of technologies. It is true that the rule will support greater production of EVs and plug-in hybrid vehicles, expanding consumer choice.
In Vermont, the thermal and transportation sectors are our largest sources of greenhouse gas emissions, and we need additional progress with electrifying our transportation sector to reach our climate goals. Vermont has already taken bold steps to address transportation emissions by adopting the Advanced Clean Rules II (ACCII) in 2023, but here the EPA's standards are critical for moving the whole country and Vermont to further drive the transition.
In addition to the emissions reduction benefits, Vermonters should consider the other benefits of this initiative which will work in tandem with state, local, and utility programs. For example, in Vermont, according to the 2023 Energy Action Network Annual Progress Report, when you spend a dollar at the gas station, 76 cents of that dollar leaves our state economy. It’s the opposite when you spend a dollar charging up an electric or plug-in hybrid vehicle, where 75 cents of every dollar spent on electricity stays in the Vermont economy. Vermonters are rightly proud of our buy-local ethic, supporting local farmers markets, bookstores, general stores, restaurants, breweries, and so much more. Driving electric is another way to buy local energy and keep more of our dollars recirculating in the Vermont economy to help our communities, instead of sending them out-of-state to buy fossil fuel.
There’s also the cost-benefit to drivers. Maintenance costs for EVs are typically half as much as conventional vehicles. While gas prices right now are well over $3 per gallon, the cost to charge an EV or plug-in hybrid vehicle is much cheaper. For example, in Burlington EV drivers can fuel up at public charging stations for the equivalent of $1.75 per gallon. Drivers who charge at home off-peak using the Burlington Electric residential EV rate can charge for the equivalent of less than $1 per gallon. Many others already offer special EV rates, including Green Mountain Power. A 2020 Union of Concerned Scientists report states that a typical rural driver can save more than $1,900 every year by switching from a conventional gasoline car to a comparable electric vehicle, adding up to tens of thousands of dollars over the life of the vehicle.
And Vermont’s grid is recognized as being one of the cleanest in the nation, (and it’s about to get even cleaner with the Legislature considering H.289 which will update the Renewable Energy Standard.) So the cheaper fuel is also the cleaner fuel in this case, making driving electric as a true win-win for consumers and the climate.
Lastly, while EV prices have historically been higher upfront than gasoline vehicles, that too has changed significantly. The price delta between new EVs and gasoline vehicles has shrunk significantly by over $14,000, such that in September of 2023 EVs had a price premium of $2,800 compared to gas vehicles. This delta is expected to continue to decline, with EVs expected to be cheaper than comparable gasoline vehicles by 2027. In 2023 a record number of EVs, 1.2 million, were sold in the U.S., and the EV share of the vehicle fleet is still rising significantly.
Further, in Vermont, there are strong state EV point-of-sale rebates that can be paired with utility rebates and federal incentives to reduce the cost of buying or leasing an EV by over $13,000. In addition, pre-owned EVs are also coming down in price to be more affordable, and are also now eligible for various federal, state, and local incentives. Drive Electric Vermont has a handy incentive calculator and vehicle comparison page, and rewiringamerica.org has a comprehensive list of other strategic electrification incentives.
While the fossil fuel industry and oil companies continue to advocate against this important new EPA rule based on their financial self-interest in preserving gasoline sales, Vermonters should look at the benefits in terms of emissions reduction, public health, and consumer savings and reject the industry’s self-serving efforts to thwart climate progress. EVs are part of the solution, and EPA is doing good work to advance stronger pollution standards for the transportation sector. We are grateful for the EPA’s efforts to make clean transportation accessible for all. Conservation groups like the Sierra Club and Utilities like Burlington Electric are coming together to support the EPA’s plans.