Senate committee proposes national EV strategy

The Senate Select Committee on Electric Vehicles has released a report finding that the uptake of electric vehicles in Australia has been slower than in other parts of the world – and the federal government could be doing more to change that.

In the report, the committee makes 17 recommendations, but committee chair Senator Tim Storer has released his own statement, calling for electric vehicles to be exempt from the vehicle import tariff and fringe benefits tax. In addition, he says 50 per cent of government fleet purchases should be electric vehicles by 2025-26.

The senator also wants the federal government to subsidise EV registration and stamp duty, support fast-charging facilities for highways around the nation and fund research and development activities, including local component manufacturing.

"I am pleased that all members of the committee agreed that Australia lags behind other countries in EV take up because of the ‘relative absence of overarching policy direction from Australian governments'," Senator Storer said in his press release.

"These are fine intentions, but neither as effective nor as responsible as a package of measures I proposed to the Committee to accelerate the take up of EVs and address longer-term challenges while maintaining the integrity of the budget..."

The independent senator says that the federal budget could be balanced by introducing a 'Road User Charge' for EVs by the 2025-26 financial year.

"As the contribution of fuel excise to the cost of building and maintaining our roads declines, it is only equitable that owners of EVs make a contribution to our transport infrastructure.

"EVs are projected to achieve price parity with ICE vehicles by the middle of the coming decade, so it would be responsible and equitable policy to delay the introduction of a Road User Charge for EVs until 2025-26.

"My package is responsible, evidence based policy making with clear benefits for the motorist, community health, the environment, the economy and the budget.

"Even though we are now in the shadow of an election, the major parties decided not to put their money where their mouths are with regard to specific measures to accelerate uptake. That is despite their acknowledgement that accelerated take up of EVs would have ‘substantial economic, environmental and health benefits'.

"The public deserve to know before they cast their votes exactly what the parties vying to form the next government plan to do to lift Australia's EV game.

"That said, I appreciate the spirit with which all Senators approached the task and for their efforts to achieve consensus, especially on the need for a national strategy and targets for the take up of EVs."

In the committee's report, the committee named 'a relative absence of overarching policy direction from Australian Governments' as the principal reason for electric vehicles failing to sell in the same proportional numbers here as they do in other markets. Other hurdles for electric vehicles include upfront cost to purchase, limited driving range, lack of recharging infrastructure and reduced model availability.

According to the committee, a larger share of the market for electric vehicles would bring economic, environmental and health benefits.

The Federal Chamber of Automotive Industries (FCAI) has welcomed the report enthusiastically.

"The international automotive industry has a strong focus on low emission and electric vehicles. Most brands have models either in concept form, in planning, or in production – and we even have several of these innovative vehicles on sale here in Australia right now," said Tony Weber, CEO of the FCAI.

"However, awareness of EV technology in Australia is low and it has been proven that, without clear policy or support from government, sales of the vehicles will be slow in the initial stages.

"The recommendations made by the Senate Select Committee will provide a much-needed boost to ensure EVs increase on Australian roads, and our country keeps up with the rest of the world in terms of environmentally innovative mobility.

"Importantly, the report calls for the government to introduce a vehicle emissions standard in Australia. A credible yet realistic CO2 vehicle emissions reduction standard is critical to stimulate investment in lower-emission vehicle technologies for the Australian market.

"Measures to support accelerated take-up of zero emissions vehicles should be part of a broader vehicle emissions package. This will help reduce emissions across Australia's new vehicle fleet and stimulate the transition towards lower emissions technologies such as battery electric and hydrogen electric fuel cell vehicles."

The recommendations tabled by the committee are as follows:
1. Australian government should formulate a national EV strategy, including national standards and regulations for electric vehicles, charging infrastructure, electricity grid integration, public safety, consumer protection, skills training and disposal of batteries.
2. Australian government should establish an inter-governmental taskforce to develop and implement the EV strategy.
3. Australian government to set targets for sales of electric passenger vehicles, light commercial vehicles and metropolitan buses
4. Australian government to set targets for procurement of electric vehicles for government fleet.
5. Australian government to liaise with the private sector to plan the roll-out of a national public vehicle charging network.
6. Australia follow the lead of other countries, which have implemented tougher CO2 emissions standards for internal-combustion vehicles.
7. Australian government to produce a public education campaign, highlighting the 'capabilities and benefits' of electric vehicles.
8. Australian government to partner with state and territory governments to bring a Formula-E Championship race to Australia.
9. Australian government to implement its own 10-year EV manufacturing 'roadmap' to integrate local research and development efforts with vehicle and system design, battery manufacturing, telematics supply chain and component manufacturing.
10. Australian government to coordinate procurement of electric vehicles for state and local government fleets through inter-governmental EV taskforce.
11. Australian government coordinate with state and territory governments for technical (repair) skills training.
12. Australian government fund apprenticeships for EV repair and manufacturing.
13. Australian government develop a 10-year plan to upgrade the national electricity grid to cope with increased demand for EV recharging after due consultation with electricity wholesalers/retailers, state governments and "other relevant stakeholders".
14. The Australian Energy Market Operator (AEMO) and federal government collaborate on a register of distributed energy resources and a strategy for AEMO to access the register "to meet operational requirements".
15. Australian government, with state and territory governments amend the National Construction Code to "render all new dwellings 'electric vehicle charger ready'.
16. Australian government and Standards Australia to amend 'AS/NZS3000:2018 Electrical installations: Wiring Rules' to limit electric vehicle charging loads when a smart load management system can automatically adjust charging in peak times.
17. Australian government and Standards Australia to develop national standards for electric vehicles.