Why Electric Vehicles? 

photo of many electric cars of different colors lined up and chargingElectric vehicles (EVs) produce lower lifetime emissions (even if the electricity is generated by fossil fuels) and have 60% the maintenance costs, lower fuel costs ($1.41 per gallon-equivalent) and lower lifetime costs compared to gas-powered vehicles.

EVs have fewer moving parts and don’t require oil changes.

EVs can easily accommodate the range requirements of most Americans (who on average travel less than 50 miles daily) and for homeowners at least, convenient overnight charging fills the “tank” by morning.

EVs will be even less expensive to drive as utilities roll out “time-of-use” rates and demand-response programs. For example, PNM’s 10 pm- 5 am rates will “fill the tank” for about $3.

As battery range and charging networks expand and as prices come down, EVs will become more attractive to rural New Mexicans as well.

Technological innovation and entrepreneurial spirit are driving advances in cleaner battery materials, recycling and repurposing batteries for other uses after their 15-20 year-life span in vehicles.

Want to try out an EV before buying?  Companies like Turo, Sixt, Hertz, and Enterprise have their electric car fleets, making it easy to set up a rental.  Also check out EV Shows like those organized by National Drive Electric Week (Sep 22-Oct 1, 2023). You can talk to owners and take a look at vehicles. 350NM and other NM groups often organize shows around the state. Questions about Teslas? Visit Tesla Owners Club of NM or email: mark.hawes@verizon.net. Look for other NM EV clubs on PluginAmerica’s State Clubs Site. University Volkswagen Mazda in Albuquerque always has at least one EV on its lot; for questions contact General Manager/Partner Bob Cockerham at Cell 505-991-1891 or bob@abqvwmazda.com. Leasing is another option. PNM also has an Electric Car Guest Drive program periodically.
The largest source of CO2 emissions in the U.S. is transportation. Ideally, we’d all walk and bike more, or at least rely on public transportation. But given the long distances many New Mexicans travel this is not always practical. By driving electric we not only cut down on CO2, but we reduce the pollution that threatens the health of 45 million Americans who live close to busy roads and transportation hubs. Widespread transition to zero emission vehicles powered by clean electricity could save New Mexicans $3 billion in health care costs, 273 premature deaths, 7,380 asthma attacks and 32,300 lost workdays by 2050.

Electric Vehicles 101

Driving an EV feels different. It is quieter. The acceleration from 0 to 60 is mind-blowing. Regenerative braking, which charges your battery, slows the car faster than coasting a gas-powered car.

An EV requires a change of mindset about fueling up – remembering to plug it in at night if you have a charger at home or having to stop more often on a road trip.

On road trips, you don’t usually run your battery down close to zero.  A good software system or app plans your stops so that you are charging anywhere from 20-80% of your battery’s capacity. Sometimes, at a fast charging station, the car is done before you’ve run to the bathroom and bought a snack.

Still have questions? These may help.

Worried about Range? For most people nearly all of the time, range is simply not an issue. Level 2 home chargers can “fill up” your EV overnight. Public, work and apartment charging networks are growing steadily, and apps will direct you to chargers, tell you how how many spots are open and how long it will take to charge. If your battery is low while you are out, you can make it last longer by driving slower and turning off heat/AC.  Range is increasing with each new generation of batteries, but as these articles show, a lot of us don’t actually need as much range as we think.

Purchase Price. The average price of an electric vehicle at the end of 2022 was $61,488 versus $49,507 for all cars and trucks. As more auto and battery makers scale up and innovate, aspire to federal tax credit requirements and compete in the market, EV prices are likely to fall sooner than expected.

Maintenance and Fuel Costs. EVs save consumers $6,000–$10,000 in lifetime costs compared to gas-powered cars.  Energy Sage estimates that nationally, it costs about $6.73 to fully charge a Nissan Leaf, $10.47 to charge a Tesla Model 3 and $14.51 for an Audi e-tron. Use the Vehicle Cost Calculator below to see how an EV might save you fuel costs compared to a gas vehicle based on your driving habits.

 

 

 

 

 

 

 

 

There has been concern about sourcing battery materials especially from countries with child labor and poor environmental oversight. Some car companies are addressing this through the Initiative for Responsible Mining Assurance, direct mining supervision and the development of alternate battery materials. Federal action and the growing market has sparked a rush of lithium mining in North America and the US, which ranks 5th in lithium reserves. (US and North America critical materials Reserves). Demand for critical minerals will increase even without EVs as they are used in personal electronics (e.g, cell phones and laptops) and in nation security (e.g., satellites and missile systems)

However, it’s important to point out the larger picture. The amount of EV materials being mined is minuscule compared to all metal mined in the world, and the amount of materials consumed by a gas-powered car is 300-400 times greater than that of an EV battery. The fossil fuels industry extracts millions-of-years old carbon that is sent into the atmosphere where it is very expensive and technologically challenging to capture and where it causes global harm via air pollution and climate change.  EV battery materials, in contrast, have local impact, stay on earth and can be recycled, ultimately reducing demand.

Investments in recycling are robust, but even before recycling, EV batteries can be repurposed. EV batteries are not like short-lifespan cell phone batteries, because they have extensive thermal management to slow degradation from temperature changes. So EV batteries that degrade to 75-80% of their capacity (after 15-20 years, 100,000-200,000 miles) are being repurposed for home, industrial and grid energy storage.

EV Metrics and Terminology

Battery size or capacity is measured in kilowatt-hours (kWh). This tells you how much energy the battery holds.  The bigger, the better. A commuter car like a Nissan Leaf might have a relatively small battery on the order of 40 kWh, while upper end cars have batteries around 100 kWh.

Range is the distance an EV can go on one charge. The larger the battery, the higher the range, generally. However many factors affect range including the weather, topography and how fast you drive. Regenerative braking adds charge back to your battery when you brake or coast. In general, most charging stops on long trips are mapped out for when you still have a decent amount of charge in your battery, so you are not recharging the whole battery every time. These can be timed with lunch and pit stops.

Efficiency or Mileage in Miles per Gallon equivalent (MPGe). This is calculated assuming that the energy content in 1 gallon of gasoline is equivalent on average to 33.7 kilowatt-hours of electricity. A car that uses 33.7 kWhr to drive 100 miles is rated at 100 MPGe. Electric cars are extremely efficient, having miles per gallons equivalents of over 100, compared to gas-powered cars, which averaged 25 mpg in 2020. Newer gas cars are rated just shy of 40 mpg.

Battery Electric Vehicle (BEV). A all electric car that is 100% battery-powered and needs a charger.

Hybrid Electric Vehicle (HEV). A car that has a gas engine as well as an electric motor and a small battery. It cannot be charged by plugging into an electrical supply.

Plug-In Hybrid Electric Vehicle (PHEV). A car that has a gas (or other fuel) engine, electric motor and a larger sized batter than an HEV. It can be charged by plugging into a charger.

Zero Emission Vehicle (ZEV). A vehicle that emits no harmful pollutants from its power source. 

Low Emission Vehicle (LEV). California’s definition.

NEMA stands for the National Electrical Manufacturers Association.  NEMA 14-50 is a charging plug for a 240 volt outlet carrying 50 amp. Read more here.

EV technology, policy and incentives are changing fast.  A very helpful organization for information about financial incentives, EVs and chargers is PlugIn America.  Here are some other resources to stay in the loop.

Shopping for new and used EVs

Selected buying guides, car databases for sellers and buyers, and resources on loans, FAQs, trends and news.

Incentives for New and Used EVs

Manufacturer and other rebates:

Government Tax Credits:

Tax credit requirements for the origin of battery materials become more strict over time. Where manufacturers assemble their EVs may also change. So which EVs qualify for the full $7,500 federal tax credit or part of it will also change over time.  Confirming that the specific car you want to buy is eligible for federal tax credits requires due diligence.  Watch out for trims that push the purchase price over tax credit MSRP limits and for models that can be manufactured in multiple countries.

Important points:

  • To see the list of vehicles that fully or partially qualify for the federal EV tax credits, check this Department of Energy webpage. This page will be updated, as manufacturers provide more information and as battery materials sourcing and assembly manufacturing evolve. Here are the IRS guidelines published April 17, 2023.
  • If the EV you want does not qualify for tax credits now, consider leasing. There are far few restrictions on leasing and on used cars. You may be able to transfer your tax credit (up to $7,500; no income limitations) to the leasing company to get a lower rate. The used vehicle tax credit is up to $4,000 for vehicles under $25,000.
  • In 2024, buyers will be able to transfer their tax credit to a dealer to receive an immediate discount or downpayment. Based on this Internal Revenue Document, we believe if buyers owe no taxes or less than the credit they will have to repay the IRS the appropriate amount at tax time.  But we await further guidance from the IRS. 

Good sources to check for updates include: Fueleconomy.gov, PluginAmerica, and the Internal Revenue Service.   We are not tax experts, so do not rely on this website for tax advice!

 

New Cars   

  •  FEDERAL guidelines
    • Tax Credit is up to $7,500 for plug-in vans, sport utility vehicles and pickup trucks with $80,000 max MSRP and for other plug-in vehicles with $55,000 MSRP. 
    • Part of the credit is reduced or eliminated if a percentage of the battery minerals are not extracted or processed in the US or Free Trade country or recycled in North America. The percentage increases from 40% in 2024 to 80% in 2026.
    • See full Internal Revenue Service Guidance for vehicle requirements and how they impact the tax credit.
    • There are income limits for who may take the credit, e.g,  $300,000 adjusted gross income for married couples filing jointly in one of two years, $150,000 for individuals.
    • The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. You may not apply any excess credit to future tax years.
    • The credit is taken for the date the car is delivered, not purchased.
    • There are also credits for business vehicles (45W).
    • EVs leased by consumers also are eligible for tax credits.  Washington Post: Why you may choose to lease your next EV
    • Starting in 2024, these EV tax credits will be transferable to dealers, essentially converting into point-of-sale upfront rebates with participating dealers.
Used Cars

  • (25E) Nonrefundable Tax Credit is 30% up to $4,000 for a plug-in (or fuel cell) EV costing $25,000 or less.
  • Nonrefundable  means you cannot get back more on the credit than you owe in taxes. If you do not owe any taxes, the IRS will not give you any money. You can’t apply any excess credit to future tax years.
  • Income limits, e.g., joint filers maximum adjusted gross income of $150,000.
  • Must buy from a licensed dealer after Jan. 1, 2023
  • Model year must be at least 2 years earlier than the calendar year in which you buy. For example, if you purchase a car in 2023, it must have a model year of 2021 or older. 
  • The car can not have already been transferred to a qualified buyer after August 16, 2022.
  • The dealer must report required information to you at the time of sale and to the IRS. Form to file with your taxes.
  • More details from the IRS.
  • Plug In America Buyers guide and Recurrent used car resources  on tax credit, batteries, how to buy and sell a used car, roadside assistance.
  • Starting in 2024, these EV tax credits will be transferable to dealers, essentially converting into a point-of-sale upfront rebates.

EV Chargers 101

Home Charging. EV chargers come in 3 levels.

Level 1 (120 Volts) is not a separate charger at all. You use the charge cord that came with your EV and plug into a standard AC 120 volt outlet. It is inexpensive, but slow, adding about 5 miles of range per hour to your battery.  To avoid tripping a circuit breaker you should not plug it in at the same time you use a washing machine or other major appliance.

Level 2 (240 Volts) charging stations allow you to charge your vehicle overnight at home, usually at a much lower cost than using a commercial network (especially if your electricity provider has special time-of-use rates for charging during off peak hours). It is 5-7 times faster than Level 1 charging. But Level 2 AC chargers require 240V, which you may not have in your garage or carport. If not, this may require an electric panel and/or wiring upgrade. There are IRA tax credits and rebates to help with that. (see incentives below) It may also be possible for the EV charger to share the circuit with a circuit splitter. Chargers can be hard-wired in or plugged into an outlet.

The fastest chargers use Direct Current (DC).  These are found along roadways, like the Tesla Supercharging network. Charging speeds and technology are expanding as more cars can charge at higher voltages – the Lucid Air Pure can add 312 miles in 15 minutes, for example.  But not all cars are compatible with the high electric loads (800 volts/350 amps) of DC charging, and not all fast chargers deliver the power needed to ensure a fast charge.  If you are buying an older car make sure you understand its charging capability and constraints.

Be aware that charging connectors differ by vehicle model and region in the world.  Connectors are converging towards two types in the U.S., the Combined Charging System Combo (incorporating the Society of Automotive Engineers J1772™ standard Level 1 & 2  plug for AC charging with the DC fast charging connector) and the Tesla connector.   Originally developed in Japan, the CHAdeMO is a DC fast charging connector, which may charge some models in the US like 2011-2021 Nissan Leafs and Mitsubishi iMiEV.

Many factors go into choosing and installing a charger and the project cost: any charging rate limits of your EV, charger location, if your electric panel and wiring need upgrading and if you will need any construction work.  See the video below.  Incentive programs may also limit your choices.
Here are some charger resources:

What’s involved in installing a charger:

EV Chargers – Financial Incentives

The US Department of Energy’s Alternative Fuels Data Center is a great place to start when looking for all kinds of incentives in New Mexico.
As noted above, Level 2 chargers require a 240 volt outlet, which may entail an ungraded electric panel and/or wiring.

There are growing incentives for multi-family housing and commercial charging in addition to residential rebates and tax credits. Because it is always less expensive to build EV ready structures than retrofit them, EV Infrastructure Building Codes should be adopted in New Mexico. Expansion of time-of-use electric rates, which provide less expensive charging during off hours and rates for low-income households will allow more people to participate in clean transportation.

For cities, schools, rural areas, non-profits, businesses, community organizations, shippers, states and individuals identify federal funding opportunities with this EV Funding Finder.
  • Federal Section 30C tax credit Alternative Fuel Vehicle Refueling Property Credit now includes bidirectional charging equipment (can provide short-term backup power to your home; e.g., cost ~$4k for Ford F-150 Lightning), energy storage projects, and chargers for two- and three-wheeled vehicles. The tax credit may be retroactive to 2017;  check with your tax advisor. File form 8911.
    • For residential properties, the tax credit is 30% up to $1,000.
    • The commercial tax credit is 30% (6% if certain qualifications are not met) per charger including infrastructure upgrades and installation up to $100,000 max per charger. Qualifications include prevailing wage and apprenticeship requirements and that the station is located in a low-income community or rural areas.  The following data are the most current income statistics for New Mexico from the US Census Bureau, are in 2021 inflation adjusted dollars and are from the American Community Survey 2021 5-year estimates. Median Household Income: $54,020. Average Household Income: $74,363. Per Capita Income: $29,624. Info from the census
  • New Mexico State Electric Vehicle (EV) Charging Station Make-Ready Building Tax Credit up to $1,500 for commercial buildings installing EV charging stations or up to $3,000 if in affordable housing building. To be eligible, buildings may not be larger than 20,000 square feet and must install wiring capable of supporting Level 2 EV charging stations at 10% of parking spaces. This tax credit is available for all taxable years prior to January 1, 2030. This is probably subsumed in the program below.
  • New Mexico State Sustainable Building Refundable Tax Credit (SBTC)  for personal or corporate income tax ( 01/01/2021 – 12/31/2027)
    • Basic minimum for EV Ready Equipment: 40 amp, 208 to 240 volt dedicated branch circuit. Buildings less than 20,000 square feet.
    • Residential (single family home) $500 product and installation costs. $1,000 per product if low-income or affordable housing.
    • Commercial (multi-family and all other buildings) $1,500 for commercial property or $3,000 if affordable housing.
    • Low-income: the owner or occupants of the building much have income equal or less than 200% of current year Federal poverty level
    • By installing energy-conserving products in an existing residential or commercial building.
    • Constructing a new residential or commercial building in a manner that qualifies for Build Green New Mexico or LEED (Leadership in Energy and Environmental Design) certification.
    • Renovating a commercial building in a way that reduces total energy and power costs by fifty percent.There are three ways to benefit from the New Mexico Sustainable Building Tax Credit Program:

EV Metrics and Terminology

Battery size or capacity is measured in kilowatt-hours (kWh). This tells you how much energy the battery holds.  The bigger, the better. A commuter car like a Nissan Leaf might have a relatively small battery on the order of 40 kWh, while upper end cars have batteries around 100 kWh.

Range is the distance an EV can go on one charge. The larger the battery, the higher the range, generally. However many factors affect range including the weather, topography and how fast you drive. Regenerative braking adds charge back to your battery when you brake or coast. In general, most charging stops on long trips are mapped out for when you still have a decent amount of charge in your battery, so you are not recharging the whole battery every time. These can be timed with lunch and pit stops.

Efficiency or Mileage in Miles per Gallon equivalent (MPGe). This is calculated assuming that the energy content in 1 gallon of gasoline is equivalent on average to 33.7 kilowatt-hours of electricity. A car that uses 33.7 kWhr to drive 100 miles is rated at 100 MPGe. Electric cars are extremely efficient, having miles per gallons equivalents of over 100, compared to gas-powered cars, which averaged 25 mpg in 2020. Newer gas cars are rated just shy of 40 mpg.

Battery Electric Vehicle (BEV). A all electric car that is 100% battery-powered and needs a charger.

Hybrid Electric Vehicle (HEV). A car that has a gas engine as well as an electric motor and a small battery. It cannot be charged by plugging into an electrical supply.

Plug-In Hybrid Electric Vehicle (PHEV). A car that has a gas (or other fuel) engine, electric motor and a larger sized batter than an HEV. It can be charged by plugging into a charger.

Zero Emission Vehicle (ZEV). A vehicle that emits no harmful pollutants from its power source. 

Low Emission Vehicle (LEV). California’s definition.

NEMA stands for the National Electrical Manufacturers Association.  NEMA 14-50 is a charging plug for a 240 volt outlet carrying 50 amp. Read more here.