Photo: Barry Kresch

A direct sales bill did pass the legislature, just not the one we wanted. Connecticut residents now can buy pot, but not a Tesla.

Emerging from the smoke, we can see for the dealers what selling EVs looks like. They prioritize politics over actually selling EVs, protectionism over innovation. The one who loses is the consumer, as most EV buyers are forced to go out of state for their vehicle, and the citizenry at large, as we live with higher levels of pollution and the planet fries. CT dealers sold an average of 1.3 EVs each in 2020 (as reported in Treehugger.com). That level of ineptitude and disingenuousness means that we can watch as the goal the state has set for itself of 500,000 registered EVs by 2030 recedes over the horizon. At this point, it is less a question of whether CT will hit that goal, than by how much we will miss it. It is fine to sign a memorandum of understanding, as the state did to much fanfare with the MultiState Zero Emission Vehicle Action Plan MOU, but without adequate legislation and policy, nobody should be surprised when there are no results.

This legislative session was pretty much a bust when it came to environmental legislation. Not only did the EV Freedom bill fail, so did the Transportation Climate Initiative, and the authorization for DEEP to look at implementing California standards for medium and heavy-duty vehicles. Even in a state that thinks of itself as progressive, entrenched interests can still act against the public good.

In the case of the EV Freedom Bill, SB 127, which was the one the club devoted much of its efforts to support, the bill passed out of the Transportation Committee by a 25-10 vote, but then stalled in the Senate. Had it passed the Senate, an equally contentious adventure loomed in the House.

We were told that our efforts fell just short in the Senate. Legislators, Tesla, and Rivian all said that the grassroots effort made a difference. But we’re obviously not quite there.

If there is anything good to be said of this effort, it is that the various advocacy groups we worked with, from the Tesla Club to the members of the EV Coalition, collaborated really well together. And we found some new partners in the Electrification Coalition, the IBEW (electrical workers union), and new manufacturers, Rivian and Lucid.

Senator Haskell plans to introduce the bill again in January. His task was made more difficult this year by the fact that he did not become chairman of the Transportation Committee until halfway through the session. His advice for next year is similar to this year: Contact your representatives. It is fine to do this out of session. If you can build a personal relationship, so much the better. They need to hear from constituents.

This bill has overwhelming public support. And there are more of us every year.

Rivian Brings New R1T to CT in Support of Direct Sales

With the fate of SB 127 hanging in the balance in the waning days of the 2021 legislative session, a pre-production version of the Rivian R1T all-electric pickup truck made an appearance in CT. It could be found Thursday in Hartford, where legislators and the governor were given the opportunity to go for a drive and see the future of electro-mobility. The fate of the bill in the Senate is expected to be determined over the next few days. It would then still have to go before the House.

On Friday, a last-minute gathering came together, where some members of the EV Club CT, were also able to get a look. We hope to bring them back to CT once they have started production later this year.

Group photos by Paul Braren

Dealers Pressure Plug In America to Back Away From Direct Sales

Plug In America (PIA) has up until now played an important advocacy role in the effort to pass SB 127 in Connecticut and similar direct sales laws in other states. They acted as a clearinghouse for a lot of information from economists, academics and others that supported our arguments for EV Freedom, and did a lot of coordinating between the numerous parties involved, including the EV Club, manufacturers, environmental organizations, lobbyists, among others.

As of now, however, the coordination Zooms have stopped and the content has been removed from the PIA website. We had copies of some of the content, and what we have is now posted on the EV Club website.

PIA has a business called PlugStar. It is a training program to help dealerships become more effective at selling EVs. The dealers pay for this and it is a meaningful revenue stream for PIA. The dealers threatened to terminate their arrangements with PlugStar unless PIA stopped supporting direct sales. The board of PIA has caved and directed that the ongoing advocacy efforts in this area cease. This is not just a CT thing.

Needless to say, those of us in the EV community were gobsmacked by this “pulling the rug out from under” move at a critical time. And we’re surprised the organization doesn’t have bylaws in place to provide separation and deal with what seems an obvious potential for conflict. We blame PIA for compromising their principles, but, of course, it was the dealers that put them in this position. They show their colors that competition is good for everyone except themselves.

This is from the PIA website:

Plug In America is a non-profit, supporter-driven advocacy group. We are the voice of plug-in vehicle drivers across the country.

It is clear that the position they are taking runs counter to their mission and that they have now become the voice of entrenched interests blocking progress.

Our club would like to see dealers up their game when it comes to selling EVs, but we don’t agree with the franchise laws being used to stifle competition. The majority of EV sales, both nationally and in CT, are from direct sales.

To the extent that club members and readers of this blog donate to PIA, we recommend sending those funds to other organizations instead. You can find a long list of worthy options in the CT Electric Vehicle Coalition.

The EV Club has also filed a Freedom on Information Act Request to obtain the relevant backup documents underlying the decision.

This Bill is Pro EV and Pro CT

A poll released by the Electric Vehicle (EV) Club of Connecticut shows that a significant majority of Connecticut residents support direct sales from Electric Vehicle companies. 83% of respondents support direct sales of electric vehicles to consumers, and only 17% oppose it.  Support for direct sales is bipartisan, broad, and deep across many different demographics and all sections of Connecticut.

Support for direct sales is growing throughout the state of Connecticut and nationwide. Last week, two letters were released—one from a broad coalition of 27 interest groups representing environmental, free-market, pro-innovation, labor, and consumer protection;  another from 75 leading academics—both urging state governments to remove restrictions on direct sales and service of electric vehicles. Among the academic signers of the letter were 7 former chief economists of the Federal Trade Commission and Department of Justice, and one Nobel Laureate.

Transportation Committee Chair Senator Will Haskell stated, “This poll is astounding. It turns out that the Connecticut State Capitol is the only place where selling Electric Vehicles directly to consumers is controversial. It’s time for the legislature to listen to the will of the public, pave the way for 21rst Century jobs, and give consumers a choice as to where they buy their next car.”

Barry Kresch, President of the EV Club of Connecticut noted, “These results, while overwhelmingly favorable, are not a surprise. This is exactly what I hear all the time on a more informal basis. It is reflected in the fact that everyone who testified at the public hearings who was not associated with a dealership was in favor of the bill. I get asked all the time why we force people to go out of state to buy the EV of their choice. It’s time we listen to consumers, accelerate EV adoption, and embrace innovation.”

“The poll conducted by GQR is proof positive that Connecticut consumers believe in the freedom to choose how they wish to purchase their vehicles,” said James Chen, Vice President of Public Policy at Rivian Automotive. “Senate Bill 127, which would allow the direct sales of electric vehicles in the state of Connecticut would be an obvious win-win for Connecticut drivers, the free-market, and the state’s environmental goals.”

GQR conducted a survey of 500 likely 2022 general election voters in Connecticut from April 16-18, 2021. The survey was conducted via cell phones using a text-to-web platform. The margin of error is +/- 4.4 percentage points at the 95 percent confidence interval; the margin of error is higher among subgroups. Electric Vehicle (EV) manufacturers Lucid Motors, Rivian, and Tesla sponsored the poll.

This is the question wording: “As you may know, the Connecticut General Assembly is considering a bill to change existing laws related to vehicle sales. This bill will allow electric-vehicle manufacturers such as Tesla, Rivian, and Lucid to open their own brick-and-mortar stores in the state, where they can sell vehicles directly to consumers rather than going through traditional car dealerships. Do you support or oppose this bill to allow direct sales from electric-vehicle manufacturers in Connecticut?”

About GQR: “For almost four decades, we have used innovative polling and opinion research to help leading candidates, parties, government leaders, corporations, and advocacy groups across the United States and around the world.”

Transportation Committee Vote Moves Bill to Full Chamber

The Transportation Committee, by a vote of 26 to 10, moved SB 127 to the full chamber.

There were several legislators who voted in favor of the bill, but who specifically said they have not definitively made up their minds with respect to the upcoming vote on the floor of the chamber. We will publish some of the questions and objections when we update this post.

Transportation Committee Chair, Senator Haskell, deserves our thanks for his leadership in picking this up and moving it forward, after his predecessor on the committee had decided to set it aside. We also thank Rep. Steinberg who has been a consistent advocate for years in favor of this measure.

This is the final roll call.

What I inferred from the hearing today reinforces what I watched/read during the public testimony period. Legislators are hearing from dealers, of course, who oppose the legislation. They are also hearing from constituents and constituents are supporting the legislation. There is no negative sentiment among the public about this bill.

We don’t take anything for granted. When we have updates with respect to further negotiations around the bill or voting in one or both chambers, we will post them (among other things).

Tesla is keeping its “Engage” page live for ease of contacting your legislators.

Headline photo courtesy of Will Cross

Post by Barry Kresch

Grassroots Momentum for the EV Freedom Bill

The atmosphere was electric as about 100 EV enthusiasts came to Westport from all over the state for a press conference supporting The EV Freedom Bill, legislative bill number SB 127. Lame puns aside, I have been part of this EV Club for 9 years, and this issue feels like it has been around for most of them, but today felt different. The grassroots energy was palpable in a way that it hadn’t been in the past. Perhaps it is due to Tesla registrations having grown to almost 6,000 in the state. Or the excitement of new, really cool, EV companies entering the market also looking to sell direct. Or energized engagement on the political front.

This bill, which in earlier guises had come to be referred to as the “Tesla Bill,” would permit EV-exclusive manufacturers that do not have an existing franchise dealer network to open stores in CT. At today’s event, Tesla was joined by Rivian and Lucid. Others are expected to adopt this business model or, more to the point, this or some other new model not envisaged in the existing dealer franchise laws that were written almost 100 years ago.

The bill also requires that companies opening stores have a sustainable model for servicing vehicles that are sold here.

The Way Forward In A Changing World

Passing this bill would be a tangible step toward supporting innovation. The industry is changing. Fissures are showing in the traditional automobile business, despite their actions to forestall competition by keeping new EV companies out of the state. 17% of Cadillac dealers opted to drop the franchise rather than embrace GM’s making this its centerpiece EV brand. Volvo announced an aggressive timeline of moving to an all-electric lineup by 2030 and moving EV sales online in the short-term. We don’t know the fine print of how this changes the relationship between the dealers and the manufacturer. If sales are online, do the dealers ever take title to the vehicle? And if they don’t, are they still a dealer? We reached out to Volvo for elucidation but have not received a response. We are guardedly optimistic that these changes are signs of a more serious effort to sell EVs.

SB 127 was introduced by Sen. Will Haskell, who organized the press conference, and Rep. Jonathan Steinberg, both of whom represent local districts. There were a number of other state and local officials present. This was the speaker order lineup:

• Senator Will Haskell (SB 127 co-sponsor)
• Barry Kresch, President of the EV Club of CT
• Rep. Jonathan Steinberg (SB 127 co-sponsor)
• Jim Marpe – Westport First Selectman
• Jeff Curry – Lucid Motors
• Kaitlin Monaghan – Rivian
• Lori Brown – League of Conservation Voters
• Daniel McInerney – International Brotherhood of Electrical Workers
• Senator Bob Duff – Majority Leader
• Former Senator Art Linares

Paul Braren has posted video of all of the speakers on his blog.

Journalist David Pogue recorded remarks that were played to the group. A schedule conflict prevented him from appearing in person but you can hear what he had to say. (His remarks are just short of 4 minutes.)

The presentations took place at the Westport Train Station in front of a depot building with a solar array that powers the building and 4 adjacent EV charging stations. These were the first solar-powered public chargers in the state. They were installed in 2012, which is when I met the club founder, Leo Cirino, and became a member.

Model Y and Lucid Air – charging stations are to the right of the building by the white Chevy Volt

Long Way To Go

In his remarks, Sen. Haskell noted that the state had a long way to go to reach its goal of 500,000 EVs in the fleet by 2030. I’ve written a lot about that and noted that given where we are today, 13,800 EVs, it will be necessary to maintain a 49% compound annual growth rate to get there. This may sound high, and it is, but it is actually worse than it sounds because this figure is growth in net registrations. Each year, there are new vehicles added to the file, but there is also turnover from vehicles leaving the file. In 2020, the turnover was the equivalent of 52% of the vehicles that were new to the file. So from an acquisition perspective, it means we need to double each year. Without SB 127, we’ll never get there.

There are many that we need to thank for a successful event including members of the EV Club and the Tesla Owners Club, not only for coming, but also for reaching out to our legislators; the public officials who support this bill; the IBEW; and Tesla, Rivian, and Lucid.

As encouraging as it was to see this level of support, it’s not over. The bill will be called for a committee vote on Wednesday. If it passes, then it goes before the full chamber. It feels like we’re only to the quarter-finals. We will update this space as we move up the brackets.

Tesla Model X in chrome wrap. Model Y on the right.

Lucid Air Interior, Who are those masked men – Barry Kresch and Bruce Becker getting set for the presser, Senator Haskell speaking about the bill (Majority Leader Duff in the background)

One final note: We have been asking people to tell their legislators they support this bill. That doesn’t stop with the press conference or even the committee vote. It is important they hear from you. Tesla has set up an “engage” page for CT that enables a 1-click message or the opportunity to customize it for yourself. You may have to set up an account. You don’t need to be a Tesla owner to do that.