24 Chargers at Hotel Marcel in New Haven

Photos: Hotel Marcel, Maxwell Electric Shuttle Minibus parked at an EVConnect charger, Solar Canopy and Tesla chargers, charging under the canopy

At long last, the chargers at the Hotel Marcel in New Haven are live. The hotel is located in the Long Wharf area, next door to IKEA. There are 12 Tesla 250 kWh Supercharger stalls  and 12 level 2 chargers from EVConnect with J-1772 connectors. The infrastructure is present to triple the number of L2 chargers to 36. You can use the EVConnect app to use them. Just download it from Apple App Store or Google Play, then scan the QR code, use the Guest Checkout option, then charging starts right away. Alternatively, if you already have a ChargePoint account, you should be able to start charging by just tapping your phone on the charger, or using the ChargePoint app. The rate for the level 2 charging is set by the hotel and it is being made available gratis. Tesla is responsible for setting the supercharger rate.

The IKEA next door has another 2 level 2 chargers (free) and there is a planned Electrify America level 3 installation coming.

The lobby area of the hotel is open 24/7 with rest rooms and food available. While you are there, check out this very cool facility, housed in a 1960’s landmark Brutalist building retrofitted as the nation’s first net-zero hotel. Power comes from solar panels on the roof and solar canopies, complemented with batteries, energy efficient electric appliances and fixtures. Even the elevators have “regenerative braking” when they are descending. The 11th Commandment: No electron shall go to waste. The insulation is very tight, including the German-made windows, which allow for passive heating in the winter. All of this makes for effective sound insulation, as well. Even though it is near a busy highway, the rooms are totally quiet.

20 Chargers Coming to Fairfield

The Town of Fairfield will be installing 20 level 2 charging ports (10 dual port units) at Sullivan Independence Hall sometime in first quarter 2023. These are intended for use by the town fleet. The town doesn’t have the vehicles yet – like with everyone else, deliveries are slow. But it’s great they’re thinking ahead. These are networked and could be repurposed for consumer use, but it is not known if that will happen.

Both the Hotel Marcel and the Town of Fairfield made use of the utility incentives for these installations.

Post by Barry Kresch

Dealerships Up In Arms Over Ford Demands

Sparks are flying between Ford dealerships and Ford Motor Corporate over a looming deadline for dealers to declare whether they want to opt-in to Ford’s new structure for selling EVs.

Ford Plan

Despite the success of its two most recent consumer battery electric vehicle (BEV) entries, the Mustang Mach-E and the F-150 Lightning, Ford CEO Jim Farley said the company needs to further streamline its operations and specialize if it is going to become a leader in electric vehicles and achieve the kind of margins seen at Tesla. Farley announced in March that Ford would be splitting the company into 3 divisions: Ford Blue Oval, Ford Pro, and Ford Model e. Blue will sell the company’s ICE vehicles, including conventional hybrids and plug-in hybrids. (Ford currently sells only 1 plug-in hybrid, a version of the Escape, a low-volume vehicle with only 72 registered in CT as of July 1.) Pro is what it sounds like – commercial vehicles. Model e dealers will be the only dealers entitled to sell BEVs. Dealerships electing not to go with the certification remain Blue Oval.

Farley was quoted by CNBC as saying, “We are going all in, creating separate but complementary businesses that give us start-up speed and unbridled innovation in Ford Model e together with Ford Blue’s industrial know-how, volume and iconic brands like Bronco, that start-ups can only dream about.”

When Ford announced the particulars at its dealership meetings in September, dealers were advised that in order to be a Model e certified dealership, they must be prepared to invest up to $1.2 million for infrastructure, do business under certain prescribed rules, and make a decision by 12/2 (pushed back from the original deadline of 10/31). Those dealerships moving forward with this arrangement are to be Model e Certified Elite. Ford is also offering a lower-investment tier, just Certified (no Elite) of $500,000 that comes with a cap on the number of EVs they will get. According to Autoblog, the cap is 25 vehicles annually and they are not permitted to be displayed on the showroom floor. This may be a useful option for lower-volume dealers.

Other requirements:

• Dealers have to ensure the chargers remain in good working order.
• Chargers must be public-facing.
• Other investments are required for equipment to service EVs, and again, they have to do this anyway.
• Pricing transparency. Dealers set the price of the vehicles, but every customer of that dealer gets the same no-haggle price. The price can be different at different dealers.
• Transactions can be done online or at the dealer.
• Dealers have to deliver EVs to buyers.
• Dealers must have pick up and drop off service for when vehicles need to go to the shop.
• Ongoing staff training is required. (I’ve lost track of how many club-members report they know more than the salesperson.)

The Model e arrangement begins in January 2024. Dealers who do not opt for Model e will be given another window to do so in 2025 to begin selling EVs in 2027.

CT Dealers Invoke the Power of the State

The Farley plan is bold, but it seems to be too bold for CT Ford dealers. They complain that it is too high a mandatory investment in too short a time frame. In addition to the investment, dealers are reportedly not happy about the restrictive pricing policy, and generally being told what they can and cannot sell on any level.

As reported in CT News Junkie, local dealers have gotten state and federal politicians to speak out on their behalf. U.S. Senator Richard Blumenthal is quoted as saying, “I’m convinced there is a case that needs to be investigated here.” Presumably, he is suggesting that the Federal Trade Commission get involved. From State Representative Roland Lemar (D – New Haven), “I think we all are going to call on Ford strongly post this meeting to rescind these terms and to restart this conversation.” And State Senator Heather Somers (R – Groton) opined, “The amount of investment required for our local dealers is staggering, absolutely staggering.”

How often does it happen that private businesses are able to get government to intervene in a commercial dispute?

Our Perspective

Ford’s plan is an aggressive gambit of the kind we haven’t often enough seen from the legacy automakers. Even though Ford is among the best positioned of these companies from the perspective of its having developed two of the most successful EVs, Farley deserves credit for pushing forward and betting on innovation.

But let’s unpack the dealership complaints.

Regarding notice, the dealerships have known this was coming since March. Though the specifics were not announced at that point, it looks to us like there were ongoing discussions with dealers, which is how the non-elite version of Model e came about as it was not a part of the earlier announcements. Yes, they have to make a big decision, but it did not come out of the blue.

According to Inside EVs, 90% of the upfront cost is for the installation of DC fast charging equipment. It is unlikely that any dealer will pay anywhere near $1.2 million. There are state and federal incentives available and they are generous. The state incentive is through Eversource and United Illuminating. DCFC installations can receive up to $150,000 (baseline) or $250,000 if the location is an under-served community, and the funds can cover 100% of make-ready (the expensive task of bringing the power, a lot of power, to the location) and up to 50% of the cost of the hardware. Furthermore, the make-ready can include oversized panels or additional conduit for future-proofing purposes. There is also a provision for EV chargers in the Inflation Reduction Act (rule-making for the IRA is still in progress). I would not be surprised if these incentives cover ~70% or more of the cost. Of course, Ford is not in a position to make specific promises about what in the way of incentives a given dealer would get, so they have no choice but to state the max cost.

If a dealership is going to be in the EV business, they need chargers anyway! Ford notes the ubiquity of its dealerships. This part of the plan will put EV chargers front and center and turn that necessity into a marketing asset. Ford has financing programs in place. And the dealers can charge for the electricity.

Most Dealers May Not Be Like CT Dealers

Not all dealerships oppose what Ford is asking. In fact, CT appears to be in the minority. CNBC quotes Tim Hovik, a Nevada dealer and head of the Ford National Dealership Council which represents Ford’s franchised dealers, who characterized the plan as “well-received.”

“The dealer body wholeheartedly agrees with Jim’s assessment, we very much want to be the most valuable franchise out there. We’re big fans of that,” said Hovik. “It’s really all about growth.”

No local Ford dealers spoke on the record in the CT News Junkie article. The only dealer quoted was Jeff Aiosa in his capacity as an officer of the CT dealer association. He owns a Mercedes dealership.

Lemonade

Dealerships have often been a weak link in EV sales. Not all of them, but many. Their innate conservatism is part of what is causing the traditional car companies to badly lag Tesla. The share of registered EVs in Connecticut that are Tesla is higher in 2022 than it was when I first began tracking adoption in 2017.

Ford’s Farley has commented that he would like to incorporate some of what he feels are the advantages of direct sales into the way Ford sells EVs. Ford, itself, cannot turn to direct sales. There are franchise laws and they’re not going away. I assume he feels it is pointless to challenge them even if he wanted to.

When I read about the Model e plan, I thought, “He’s figured out how to make lemonade.” The dealership in this model actually becomes an asset.

If every Ford dealer has publicly accessible DCFC prominently displayed, it sends a message to the consumer that this is a brand that is serious about selling EVs. The pricing transparency may work to reduce the dealer markups over MSRP or attempts to force customers to buy options they don’t want. Ford has been opposed to these practices. If owners of other brands are allowed, even encouraged, to charge at a Ford dealership, it is a way for them to see what Ford is offering and how they approach selling EVs that may influence the purchase of their next vehicle.

Aside from the chargers and pricing, the other requirements listed in the bullet points go beyond what many dealers offer today, but they will all contribute to a better consumer experience.

Ford is not so gently encouraging specialization. While a Certified-Elite dealer can continue to sell ICE vehicles, the program pushes them to emphasize, and I suspect at some point only sell, EVs.

Ford’s plan is a serious attempt to solve the dealership conundrum. It is different than the “put up or shut up” approach of GM, where the company ended up buying out 17% of its Cadillac dealerships that were not prepared to invest in EVs.

I beg to differ with Senator Blumenthal. We don’t need an investigation. We need forward-looking, consumer-friendly ways of doing business.

Update:

Multiple sources are reporting that two-thirds of Ford dealerships have elected to participate in Model e with the majority opting for the Elite certification level. There are some other areas where like CT there is a more organized level of opposition.

Lawsuits have been filed by dealers and their associations against Ford. We don’t have the Venn diagram to know the overlap between those who signed up for the program and those who filed suit. It is possible a dealership might opt-in to Model e to avoid being shut out of EV inventory and still participate in the lawsuits pushing back on Ford. A description of the cases can be found at FordAuthority.com. The article mentions some dealers and associations, but has no mentions regarding Ford dealerships in CT.

UPDATE: This event is postponed to Sunday, 11/13, same time, due to forecast for inclement weather.

A team of students from Lafayette College are planning an electric airplane flyover during a football game on Saturday, 11/19. Lehigh University is the opponent and the game is being held at Lafayette in Easton, PA.

The Pipistrel Alpha Electro airplane that will be used is based in Hartford and, according to a Facebook post by Remi Oktay, one of the Lafayette students, will need to make 3 charging stops to get there. The first two stops are in CT – Waterbury-Oxford Airport at 6:15 AM, followed by the Danbury Municipal Airport at 8:30 AM. We understand that spectators will be accommodated.

None of these airports has charging facilities, so in what might be the coolest part of this, Ford F-150 Lightning owners are being recruited to use the vehicle’s bi-directional charging capability to “refuel” the aircraft.

We wish them the best!

Telematics Phantom Drain Issues Fixed by Eversource

Some EV owners who are interested in participated in the Eversource and UI (collectively, the EDCs) demand/response charging incentives, but do not have/don’t plan to get an approved charger are still able to participate via telematics, where the EDCs communicate directly with the vehicle.

Eversource customers who signed up were seeing frequent battery wake-ups as the car was being pinged every half-hour along with measurable battery drain. This has now been fixed, courtesy of a software update. Also, the demand-response period ends at the end of this month. There will be a new vendor and new process rolling out in 2023.

Eversource has thanked the club, particularly Paul Braren, for the detailed feedback and beta testing of the new software.

This was not an issue with United Illuminating, which uses a different vendor.

Changes Coming for Next Year

The demand response program involved discrete events, meaning periods of a few hours on a hot day, where charging gets throttled. For year 2 and going forward, the Public Utilities Regulatory Agency has asked for an additional option. It is referred to as “managed charging” and proposals are being submitted for approval. Most likely, consumers will have an opportunity to choose A or B, with different incentive levels are associated with each. When details are available, we will update.

Eligible Equipment and Vehicles Update

Since the majority of registered BEVs in the state are Tesla, the question has come up on more than one occasion of whether Tesla chargers will be part of the program. To this point, Tesla has not submitted a charger for the EDC approval process, and so telematics remains the only option for Tesla owners. There are also a lot of EV owners, and not just Tesla owners, that already have chargers, which may not be part of the program. The telematics option is available for some of these vehicles.

At this point, only ChargePoint and EnelX (JuiceBox) have approved chargers, several models for each.

Below is the list of approved telematics vehicles.

The list of approved chargers and telematics vehicles is currently the same for both Eversource and UI. Eversource has advised us of pending telematics approval for several vehicles from Hyundai, namely the 2021 Ioniq BEV and PHEV, Ioniq 5, Santa Fe PHEV, and Tucson PHEV.

Post by Barry Kresch

Tax Credit for Purchase and Installation of an EV Charger

The recently passed Inflation Reduction Act has amended US Code 26, Section 30C to reinstate a tax credit for the purchase and installation of an EV charger.

This credit had been in the tax code a while. Every year it expired and every year it got extended for one year, sometimes, as is the case now, after the fact. It had expired on December 31, 2021. It is now folded into the 10-year time horizon of the IRA. Here are the key things to know:

• The credit is for 30% of the combined cost of the hardware and installation, capped at $1000. This is the same as what it used to be.
• This has nothing to do with the utility incentives. Any charger qualifies.
• It is retroactive to January 1, 2022. If you bought a unit earlier this year, include it in your tax return.
• This incentive becomes more restrictive beginning in 2023, going through 2032. It then applies only to low income communities and rural census tracts.
• Use IRS form 8911 to claim the credit.

There is a commercial version of this with higher amounts.

Standard caveat: Always check with your CPA.

Photo: Hyundai Ioniq 5 is an example of a vehicle that immediately loses eligibility due to its not being manufactured in North America

Post by Barry Kresch

Which EVs Are Eligible for the Federal Tax Credit for the Remainder of 2022

The Inflation Reduction Act, for the most part, goes into effect in January 2023. That leaves this interregnum from August 16th through the end of this year, when the existing program stays in place except for the fact that as of the moment the ink dries, EVs not assembled in North America lose eligibility. According to EVAdoption, only 21 models qualify for the remainder of this year:

All of these are manufactured in either the United States, Canada, or Mexico.

The manufacturer cap remains in place until the end of the year, which eliminates Tesla and General Motors. All of the above manufacturers have not phased out. Toyota reportedly exceeded the 200,000 unit cap during the second quarter. That would translate to the tax credit being halved in Q4. After that, they wouldn’t have to worry about it. For any company that exceeds the cap in the third (or fourth) quarter, Ford being the most likely example, it becomes a non-issue as the cap would be gone before they phase out.

The Volkswagen ID.4 has been imported from Germany, but the company will soon manufacture them in its Tennessee plant. Be sure and check.

Customers of Rivian and Lucid, new manufacturers of high-end EVs, will be able to utilize the credit until the end of the year. As of next year, these cars, except for lesser equipped versions of the R1T and R1S, will exceed the new price thresholds. The Karma and the Mercedes also exceed the new price thresholds.

What if You Bought a Car Earlier This Year That Is No Longer Eligible

If you bought a car earlier this year that was eligible when you bought it but has lost eligibility either as of August 16th or will lose eligibility as of next year, you can still take the tax credit when you file your 2022 taxes.

If you have a binding contract from before August 16th on a vehicle such as the above-noted Ioniq 5 that has lost eligibility, but you have not taken delivery, you should still get the credit based on the federal language. Usually, it means a binding contract that neither party can change, a non-refundable deposit, and a VIN.

“Binding” is the key word. This is the IRS language:

“If you entered into a written binding contract to purchase a new qualifying electric vehicle before August 16, 2022, but do not take possession of the vehicle until on or after August 16, 2022 (for example, because the vehicle has not been delivered), you may claim the EV credit based on the rules that were in effect before August 16, 2022. The final assembly requirement does not apply before August 16, 2022.”

A binding contract is generally interpreted as enforceable under state law, including a non-refundable deposit of at least 5% of the total value. This is an excerpt of the language on the IRS website (which is federal):

“For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract. A contract is binding even if subject to a condition, as long as the condition is not within the control of either party. A contract will continue to be binding if the parties make insubstantial changes in its terms and conditions.”

As we are always careful to say, we try to provide accurate information, but with respect to tax credit eligibility, please check with a CPA.

Although I applaud the goals of the IRA, I think this abrupt loss of eligibility is confusing for consumers and not helpful in general.

We do not yet know which models will meet the minerals sourcing and battery manufacturing requirements that take effect next year. I expect to see reports in the EV press as models become declared eligible.

Photo by David Dreyfuss/Post by Barry Kresch

Update:

These chargers have been ordered removed. The site has been approved for chargers but not the signage.

How Did That Happen?

Volta is a company that installs charging stations at their own expense at highly trafficked locations which are free to users. These chargers are at the site of the former Barnes and Noble on Post Road East in Westport, now being renovated as an Amazon supermarket due to open later this year.

Volta chargers have large screens that display digital advertising. Its business model is that the advertising covers the cost of installation and power, plus earns a profit. The business benefits from having this amenity (and Amazon has made sustainability a corporate focus). Volta chargers typically have J1772 connectors.

While we always welcome EV charging stations, the odd thing about this is that a proposed Volta installation just down the road at Stop and Shop was nixed by Westport Planning and Zoning, the reason being that the video display was non-conforming signage. Do they think these will remain invisible?

Volta chargers can be found at the new upscale mall, The Sono Collection, in Norwalk. Malls and supermarkets are ideal locations from Volta’s perspective with people constantly coming and going, the better to bulk up the number of advertising exposures. The chargers are placed in a prominent location, not ancillary parking. Volta has a master agreement with Stop and Shop to install chargers at a number of their locations, including 2 locations in Norwalk.

Just don’t try and sneak in for a charge after hours. They typically turn off the units when the business is not open. Operating hours can generally be found on the PlugShare app. These chargers are not yet listed because they are not yet live.

Net-Zero Hotel Marcel Gets Electric Shuttle Bus

Ensconced under the solar canopy in the photo, in front of level 2 J-1772 chargers, is an electric shuttle van from Maxwell. The shuttle seats 14, including the driver. This is a battery electric van, i.e. 100% electric. Maxwell has been manufacturing these at its Southern California facility since 2019. It sports a 74 kWh battery, a range of 150 miles, and can take a DC fast charge using a CCS connector.

It is owned by the recently opened net-zero Hotel Marcel, and is ready to provide guests with an emission-free and quiet ride to downtown New Haven, the Yale campus, Tweed Airport, or the nearby Amtrak station. The hotel can use it to transport wedding parties, and it has the range to reach Westchester and Bradley Airports.

Electric vans are projected to be a high-growth segment. Amazon has ordered 100,000 delivery vans from Rivian. FedEx is testing 150 electric delivery vans in Los Angeles, purchased from BrightDrop (General Motors.) There are reportedly around a half-million of this category of passenger van, now ripe for moving to electric.

The existing, quaint rules need updating. As part of the registration process, the vehicle had to pass an emissions test.

We are not aware of any other electric shuttle vans in the state. If you know of any, please tell us in the comments.

The photo above is the solar canopy in the parking lot of the net zero Hotel Marcel in the Long Wharf area of New Haven. The newly opened hotel, powered by solar panels on the canopies and the roof of the building, is soon to be home to one of the newest clusters of EV chargers in the state.

There are 12 Tesla Superchargers, along with EVConnect level-2 chargers with J1772 connectors. The initial level-2 installation will be 10 level-2 ports (5 dual port units), eventually growing to 30 ports. The infrastructure for the expansion is already in place.

The level 2 chargers are under the canopy. The Superchargers are close to the canopy. Basically, whomever plugs in will have a sheltered walk to the front door of the hotel. The chargers are located at the far end of the lot to discourage ICEing.

The units are not live as of this writing. There is a “splice box” that has yet to arrive for the transformer. It is hoped that the units will be online by mid-August but we’ll publish updates as more information becomes available. We are waiting for the chargers to come online to schedule a planned EV Club meeting at this facility.

There are also 2 level-2 ChargePoint chargers just a few feet away near the entrance to Ikea. These are in operation.

Applicants Will Have To Wait

Good news/bad news. Demand is strong but the funding isn’t there to fully meet it.

A crush of applications for incentives for DC Fast Chargers, the high-powered chargers that can recharge an EV to 80% inside of 30 minutes, most frequently located along highway corridors, has caused the program run by Eversource and United Illuminating to become fully subscribed just six months after its inauguration. This is a  9-year program that runs in three 3-year cycles. So the funds depletion could last until 2025.

Eversource and UI have requested additional funds, so there could be funds available sooner, but it is too soon to know details. Eversource and UI advise that if you had planned to submit an application to follow through with that submission. They continue to evaluate applications and this will establish your place in the queue.

There is still a substantial amount of funding available for level 2 (240 volt) chargers and grants are being made on an ongoing basis.

This does not affect the residential incentives program (which does not included DCFC).

CHEAPR Follow-UP

The increase in the MSRP cap is fully implemented. Vehicles with an MSRP of up to $50,000 are now rebate-eligible.

There are some vehicles that are eligible that are not yet on the list of eligible vehicles on the DEEP website. We have gotten a few inquiries about the Ioniq 5 in particular. DEEP is aware of that one and it will be added soon. If you are shopping for an EV and you don’t see it included where you think it should be, let us know and we’ll pass the info along. This applies not only to newly introduced models but also a new model year of an existing vehicle.