Resolution: Self paying vehicle loans

Overview
Long term support for PHEV sales can be sustained with a revenue neutral program. Because a program that allows PHEVs to be sold at competitive prices can be constructed in a way that pays for itself, it is possible to extend the program to all PHEV sales, not simply the first million. This will speed the transition of the US fleet (250 million vehicles) at a much higher adoption rate than can be achieved with tax credit subsidies.

This resolution relies on authoritative figures from the DOE and other agencies to show that in a revenue neutral way it is practical to finance plug in hybrids using money that the purchaser would have paid for gasoline to instead defray the higher cost of the plug in vehicle, as well as the higher cost of alternative energy. Although the proposal is for the state of Hawaii, it can be applied at the national level.

Status: What is needed is for the proposal to be subjected to peer review by economists to verify the claims made in the proposal's notes that make the financial case for the approach.

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Text of the Resolution
Original text may be found at Hawaii Democratic Party Website .

“Self paying Electric Vehicle Loans” 2008 Hawaii Democratic Convention Resolution BUSIN 08-15


 * Whereas sales of gasoline will drain $1.8 billion from the Hawaiian economy in the coming year at the rate of $4.00 per gallon;


 * Whereas importing oil is now more expensive than paying for electric cars powered by alternative Hawaiian energy sources;


 * Whereas moving to electrical cars powered by Hawaiian alternative energy would result in cheaper energy for car owners, and result in jobs for Hawaii;


 * Whereas the barrier to moving to electric cars is the sticker shock due to the expense of the car battery;


 * Whereas this price per unit of energy is sufficient to pay for Hawaian alternative electricity for plug in electric vehicles charged at a rate up to 34 cents per kilowatt hour and also pay for the price of the battery;


 * Whereas consumers would be motivated to purchase an electric vehicle if there were a self paying loan that made the price close to that of a comparable vehicle;


 * Whereas "self paying loan" means a loan offered by financial institutions with incentives from the State of Hawaii whose repayment is made by surcharges on the electricity used to recharge the electric vehicles;


 * Whereas surcharge means that the consumer pays for electricity for the vehicle at a rate lower than what they would pay for gasoline, but higher than what they pay for normal household electricity.


 * Whereas energy for electric vehicles shall be charged separately on the electrical bill surcharged at this higher rate, and this extra money shall be used to pay back the loan and pay for the electricity at a rate sufficient to motivate Hawaiian alternative energy production.


 * Whereas qualifying electric vehicles are plug in vehicles with sufficient battery capacity to run 20 miles of urban driving on a single overnight charge;


 * Whereas qualifying electric vehicles have separate metering using inexpensive current technology such as wireless broadband communications such as EVDO chips used in cell phones;


 * Whereas Hawaiian alternative electricity means electricity generated from energy sources that are not imported to the islands, such as wind, solar, geothermal, hydro, wave action, and biomass grown on the islands;


 * Be it resolved that the Democratic Party of Hawaii supports policies that will ensure that a new kind of car loan is made available by 2010 to electric car customers which is repaid from the fuel savings from using Hawaiian alternative electricity and;


 * Be it further resolved that copies of the Resolution be transmitted to the Democratic members of the State Legislature, the Governor, the commissioners of the Hawaii state Public utilities Commission, the Chairman of the DNC, the Platform Committee of the Democratic National Convention, and the Mayor of the City and County of Honolulu.
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Infobox information

 * Type: State Party Resolution
 * Formal Name: BUSIN 08-18: Self paying Electric Vehicle Loans
 * Topic Tags: Energy independence, Green Jobs, Alternative energy, Electric Vehicles
 * Passed: May 22, 2008 Hawaii Democratic Party Convention (HDPC), Honolulu Hawaii
 * Sponsor 1: John J. Messerly of Hawaii Kai, Oahu County
 * Sponsor 2: Brian Schatz, Hawaii Democratic Party Chair
 * Supporting signatures:
 * Progeny:
 * Draft proposals posted on DNC and Obama Blogs
 * Passed without amendment for submission to the convention floor by Business and Economic development committee, May 21, 2008 HDPC.
 * Passed without amendment by HDPC vote, May 22, 2008 HDPC.