Olympia, Wash. – Eliminating Washington’s Alternative Fuel Vehicle Tax Exemption would harm long-term economic growth in the state while increasing its reliance on the volatile oil market, according to a new study released today by Keybridge Research LLC. Removal of the exemption, according to the report, would subtract $68 million from the state’s economy over the next 16 years while making consumers more vulnerable to fluctuating gasoline prices.
The report’s findings were announced today in a press conference with state Sen. Mark Mullet (D-Issaquah), state Rep. Dick Muri (R-Steilacoom), and Keybridge Research President and former Chief Economist on the President’s Council of Economic Advisors, Dr. Robert Wescott.
The report’s analysis finds that if the state’s Alternative Fuel Vehicle Tax Exemption were eliminated, Washington consumers would spend an additional $40 million over the next five years on gasoline. That figure would increase by an additional $191 million through 2030. With fewer electric vehicles on Washington roads, the state would be more vulnerable to the negative effects of high and volatile global oil prices, eliminating an important insurance policy for businesses and consumers.
“Every time an electric car replaces a gas-powered car, we eliminate pollution from the tailpipe into the air we breathe and we reduce the need to drill, refine and transport oil products that pose risks to our environment every step of the way,” Mullet said. “The exemption is vital because the electric vehicle industry has yet to pass the tipping point where consumers can buy a car with a 200-mile range at an affordable price. It is critical that we continue to support this industry at this time.”
“Many of us drive electric vehicles because we’re in favor of greater energy security,” said Muri. “When I pay my electricity bill for example, I don’t send one dime overseas to OPEC. All of my transportation dollars stay right here in Washington.”
The U.S. transportation sector relies on oil for more than 92 percent of its power, a dependence that endangers national security and hampers economic prosperity through the country’s exposure to the highly volatile global oil market.
The study, “Impact of Eliminating the Alternative-Fuel Vehicle Tax Exemption on the Washington State Economy,” was commissioned by Securing America’s Future Energy in partnership with the Electrification Coalition.
About Securing America’s Future Energy (SAFE)
Securing America’s Future Energy (SAFE) is a nonpartisan organization that aims to reduce America’s dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy. SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in fuel efficiency, and in the long-term, breaking oil’s stranglehold on the transportation sector through alternatives like natural gas for heavy-duty trucks and plug-in electric vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing U.S. oil dependence.
About the Electrification Coalition
The Electrification Coalition is a nonpartisan, non-profit group of business leaders committed to promoting policies and actions that reduce America’s dependence on oil by facilitating the deployment of electric vehicles on a mass scale. The members of the Electrification Coalition are leaders of companies representing the entire value chain of an electrified transportation system.
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