At a ‘crossroads’: Legislators explore binational push for electric vehicles, potential impact of EVs in region

Along the nearly 900 miles of road from Kalamazoo, Mich., to Quebec City, there is a new guarantee for the drivers of electric vehicles: publicly available DC fast chargers every 50 miles. It’s the first-ever binational EV corridor for Canada and the United States, a route that makes its way through the heart of the North American automotive industry.

Announced last year, the corridor is evidence of advances on both sides of the border to build out the EV infrastructure.

Legislators explored this expansion, along with trends in EV adoption, during a session organized by the Midwestern Legislative Conference Midwest-Canada Relations Committee and featuring two expert speakers: Neal Osten of the Institute for State Policy Leaders and Matt Stephens-Rich of the Electrification Coalition.

On the U.S. side, the $5 billion National Electric Vehicle Infrastructure Plan is creating a network of fast-charging stations along interstate highways. The Midwestern region, “the crossroads of America,” will see a massive uptick in these stations as a result. In Canada, the Zero Emission Vehicle Infrastructure Plan is investing $680 million through 2027.

Crucial to the Midwest amid these changes to accommodate EVs: keeping its status as an auto sector hub. Estimates of potential employment growth across the EV supply chain range between 25,000 and 100,000 new jobs in Canada by 2040 and 160,000 new U.S. jobs by 2032. Notable investments are being made in the region; for example, Honda’s $15 billion EV investment in Ontario, the $4.9 billion BHP Potash Mine in Saskatchewan, and the $2.2 billion Ford battery plant in Michigan.

Other regions, though, are vying to be EV manufacturing hubs, with Osten pointing to South Carolina as an example. There, a concerted state effort has led to a series of major new private investments. During this summer’s MLC session, legislators also raised questions about competition from overseas EV manufacturing. They pointed to other unknowns, and potential problems related to widespread EV adoption as well. Can the electric grid keep up with rising demand? Will issues of equity arise, with non-homeowners and rural residents left without places to charge EVs? What happens to EV batteries after their lifespans?

These questions highlight the important role that state and provincial legislators will play in the coming years, in planning for the EV future and adopting effective policies. Many states already have chosen to encourage more EV sales, through a mix of tax credits and other policy tools.

One of the more aggressive strategies has been to establish some form of a zero-emission vehicle (ZEV) mandate. Twenty-two U.S. states now have such a mandate, Osten said. Most, but not all, of these mandates aim for 100 percent sales by about 2035. Recent ZEV actions in Illinois and Michigan address government fleets of vehicles:

• Starting in 2030, Illinois will require state agencies, with the exception of law enforcement, to purchase ZEV passenger vehicles (SB 1769).
• An executive order in Michigan calls for the state’s fleet to be ZEV by 2040.

In a third Midwestern state, Minnesota, new rules are requiring automakers to increase fuel economy and adhere to a ZEV sales requirement.

After the initial purchasing price, Stephens-Rich said, fuel and maintenance costs for EVs are very low, meaning long-term savings for states and provinces that transition to EV public fleets. He also said an increased use of generation facilities during off-peak hours (EVs getting charged at night) could lead to higher revenues for utilities and lower rates for customers.