Electric Vehicles
NACS seeks to ensure its members can sell drivers the energy they need to fuel their vehicles. That means ensuring the electricity markets allow for a level playing field for electric vehicle charging and that particular technologies are not mandated by government policy.
With some states pushing to electrify the transportation system, markets for electricity must be fair and competitive.
The Issue
As part of the debate around EVs, some policymakers encourage government agencies or electric utilities to build, own and operate electric charging stations. In several states, electric utilities have been approved to charge all of their customers (or ratepayers) to subsidize the cost to build the necessary infrastructure as well as own and operate the chargers themselves. In addition, some states require businesses that sell electricity for the purpose of charging EVs to be regulated like a utility. Businesses also must pay additional fees or tariffs, called demand charges, above and beyond the cost of the electricity itself. This outdated market design dampens private sector investment and makes it difficult for convenience and fuel retailers to participate in the EV charging market.
Retail Impact
The convenience and fuel retailing industry sells over 80% of the motor fuels in the United States at approximately 120,000 locations. Policies that impact transportation energy and, such as what and how to sell, store, label, dispense, price and tax fuel, can have a dramatic impact on the industry. Not allowing the resale of electricity to charge EVs, permitting utilities to charge all of their customers to subsidize EV charging, and the additional cost for non-utilities for the cost of electricity (i.e., demand charges) will stunt the private sector’s ability to invest in EV charging infrastructure and ultimately hinder the development of a robust charging marketplace. In addition, mandating one vehicle technology will harm the entire transportation energy market by reducing innovation and consumer choice.
NACS Position
NACS believes that EV charging should be an open, competitive market. Convenience and fuel retailers should have the option to sell any legal source of transportation energy in a competitive market with a level playing field. Allowing the private sector to compete evenly is the best way to spur investment in and the development of electric charging infrastructure. It is also the best way to ensure that vehicle owners get the best prices and experience over the long-term. With around 120,000 fueling locations, the convenience industry is well-positioned to provide the energy needs of future drivers – regardless of the energy source. All industries, whether it be a gas station, utility, technology company or other type of business, should have fair access to incentive and investment opportunities to provide consumers the widest range of choices in fueling their vehicles.
Latest Updates
Some states continue to press for technology mandates or regulate electricity markets that are not competitive. Congress and the President are not pursuing such policies currently, but may do so in the future.
