Advanced Energy United News

Energy News Network: Why the State Budget This Year Is Key to Michigan’s Transportation Future

Written by Laura Sherman and Samarth Medakkar | Apr 27, 2023

In an op-ed in Energy News Network, Samarth Medakkar joins Michigan EIBC President Laura Sherman in writing about the ways Michigan's 2024 budget is set to expand the state's EV infrastructure and how the Gov. Whitmer administration can fully realize its EV goals with that funding.

The shift to electric vehicles is firmly under way in Michigan. Across the Whitmer administration,  the legislature, local and municipal governments and the private sector, a number of initiatives have been launched to make that transition happen. But the next year or so might be the most crucial time to determine the success of those efforts.

Through fiscal year 2026, the state of Michigan is receiving about $110 million in federal funding to realize the state’s plan to build an electric vehicle (EV) charger at least every 50 miles along several highway routes that the state has nominated for the federal government to designate as Alternative Fuel Corridors. These include some of the most well-known and well-traveled routes in the state, like Petoskey to the Mackinac Bridge and Detroit to the Blue Water Bridge. This $110 million comes from the National Electric Vehicle Infrastructure (NEVI) Formula Program, a U.S. Department of Transportation program created by the 2021 Infrastructure Investment and Jobs Act (IIJA).

But while these dollars come from the federal government, actually putting them to use is going to take hard work in Michigan. Crucially, the executive budget proposed by Gov. Whitmer includes a provision to allocate $45 million for a “Michigan Clean Fleet Initiative” to help counties, municipalities, airports, and regional transportation authorities switch their vehicle fleets to electric vehicles and clean fuels.

Through the MI Healthy Climate Plan, the governor has set a goal of 2 million EVs on Michigan roads by 2030. But the barriers are also psychological, not just material. Consumers and businesses need to become more familiar with EVs. One of the biggest remaining barriers limiting the growth of EVs is the fact that “U.S. dealers and consumers continue to lack understanding of EV fuel and maintenance cost savings during [the] sales process,” according to the Brattle Group.
 
There are a huge amount of potential savings from electrifying state fleets—for example, a recent analysis from Advanced Energy United found that the state of Florida could save nearly $280 million by considering the total cost of vehicle ownership, rather than just the purchase price, when making vehicle procurement decisions in great part because of the long-term maintenance and fuel cost savings from EVs.

These elements of the governor’s budget add up to a strategy for moving Michigan further toward the electrification of mobility. They could not come at a better time.

 Read the full article here.