Bill Memo: Direct EV Sales
This legislation amends the vehicle and traffic law to allow for franchisors, manufacturers and distributors of zero emissions vehicles to sell directly to customers as long as they do not already have an existing franchise in the state.
New York State has a goal to get 850,000 electric vehicles (EVs) on the road by 2025 as part of Governor Cuomo’s Make-Ready program. But the State is falling short of this goal with less than 70,000 EVs on the road today due to the existing barriers customers face when trying to buy an EV. This bill will expand the opportunity for EV ownership by allowing manufactures of exclusively zero emission vehicles to sell directly to customers.
Currently New York State law prohibits manufacturers of exclusively zero emissions vehicles from selling their vehicles directly to the public with the exception of the five showrooms and service centers owned and operated by Tesla. The inability to sell their vehicles directly to the public, as well as the cap on direct sales locations, stifles the EV market. Many EV manufacturers operate on the business model of selling directly to customers without a dealership serving as the middleman, so extending the ability for direct sales will allow EV manufacturers to invest in New York, which will create jobs.
In 2019 the Climate Leadership and Community Protection Act (CLCPA) set a goal of 85% reduction in greenhouse gas emissions by 2050. Transportation emissions are the biggest contributor to greenhouse gas emissions in the state, which means the transition to EVs is a significant part of achieving the emission reductions goals of the climate law. A direct sales model for EVs will allow the market to grow, which will reduce emissions and result in cleaner air and healthier communities.
Environmental Advocates NY Bill Rating: Substantial Benefit
Memo #: 52