Pub. 5 2024 Issue 2

next two decades. Virginia was the 15th state to adopt the California standards and is one of 18 states and the District of Columbia to have them. Unfortunately, the lack of consumer adoption and state funding for CARB meant the policy hurts, not helps, consumers and auto dealers. In 2022, the Virginia Office of the Attorney General ruled that the Commonwealth is “bound” by the California decision to go fully electric because the Commonwealth’s leaders chose to be “statutorily and regulatorily aligned with California.” To change may require an amendment or repeal of the legislation, the office said. The General Assembly directed Virginia’s Department of Environmental Quality to adopt the California Clean Cars I program and amendments to it. The Governor’s office says Virginia law does not compel the adoption of the second — and more expansive — iteration of California’s standards, Advanced Clean Cars II (ACC II). This is an entirely new regulation, not simply an amendment to the existing ZEV standards. As such, the Attorney General has concluded the 2021 Virginia legislation does not require the Commonwealth to adopt the new regulation. Q&A The Market for EVs in Virginia According to a 2023 Economic Impact Report from VADA: • EVs account for 8.8% of all new vehicles sold in Virginia, up from 3.1% in 2021. Hybrid vehicles (which use gas, but recharge a battery for greater mileage) accounted for 11% of sales. However, hybrids do not contribute to CARB targets. • The average Virginia dealership invests $348,000 to upgrade their infrastructure to support EVs. • Virginia dealers are expected to spend $159 million in 2024 upgrading their facilities to sell and service EVs. • Dozens of new fully electric models will be released over the next few years from well-known manufacturers. 10 Virginia Auto Dealer

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