#218

EV Legislation & Incentives GuideEV
TABLE OF CONTENTS
Introduction

Electric
VehicleElectric vehicles have now cemented their place in the automotive mainstream, with their popularity growing
exponentially as legacy OEMs and newer automakers continue to announce and roll out new solutions. This
growth, and the increasingly strong market opportunity for EVs, has even led non-automotive players to reveal
their own solutions with the intent to gain industry footing.

Bird’s Eye View
Executive Summary

However, regardless of their experience or expertise, all players looking to sell their EVs on a global scale will
equally have to navigate the legal landscape for them. They will likewise need to understand how it varies indifferent regions around the world today, how it is expected to evolve in the future, and the incentives offered byeach region to encourage EV adoption.

The Basics
Analysis

The EV Legislation & Incentives Guide provides in-depth analysis of how and where legislation is impacting
electrification. It aims to help OEMs and lawmakers understand the legal landscape and incentives offered for EVs
today, and what legislation is being worked towards by governments in different regions. The guide is released
quarterly to provide the latest updates and offers an accompanying Excel version featuring deep, data-driven,
analysis.

Summary Tables

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#218/EV Legislation & Incentives Guide

Key questions answered> What is the impact ofmajor legislation on theindustry and market?

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> What are the regulations forcharging infrastructure?
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C- S u ite> What is the likelihood thatdeveloping legislation will
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EV Legislation & Incentives Guide
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EV Legislation and Incentives Guide

Contents
218 - EV Legislation & Incentives Guide
Introduction ≫5▪ Incentives Overview

Bird’s Eye View ≫7▪ Disincentives: Consumer/registration fees

Executive Summary ≫12

China Overview

The Basics ≫18▪ License plate lottery/quotas policy

Analysis ≫23▪ "Fourteenth Five Year Plan“ for emissions reduction

Europe Overview▪ Incentives Overview▪ Alternative Fuels Infrastructure Regulation (AFIR)▪ Vehicle purchase incentives▪ Green Deal and Fit for 55

Global Overview▪ Incentives Overview•

Global Regulatory Landscape•

Rest of the World Incentives snapshot•

Standards – Charging•

Standards – Infrastructure▪ UK Vehicle Excise Duty•

Standards – Others

USA Overview

Explore▪ Wireless Electric Vehicle Charging Grant Program Act of 2023

Summary Tables ≫▪ Ending Duplicative Subsidies for Electric Vehicles Act▪ Europe▪ Multi-Pollutant Emissions Standards for MY 2027 and Later▪ USA▪ Inflation Reduction Act (IRA)▪ China▪ Infrastructure Investment and Jobs Act (IIJA) of 2021

▪ Global▪ California Air Resources Board (CARB)

Next Steps ≫83Contact Us ≫86

▪ Tax benefits for the purchase of EV’s
▪ Environmental Bonus 2023

▪ Impact of EV purchase incentives▪ VAT and Weight Tax

64
Data Deep Dive
View and analyze deep
data in your own way

Total number of pages - 86

Introduction

Introduction

Introduction
In order to achieve their respective zero-emission targets, governments
around the world are supporting the electrification of vehicles in many
ways. On one hand, they are encouraging consumers to purchase EVs. On
the other, they are also encouraging the vehicle manufacturers toprioritize electrification which is why automakers are investing heavily inelectrification and looking beyond internal combustion engines (ICEs). This
broad government support of electrification has been realized throughvarious forms of incentivization and regulation.
The EV Legislation & Incentives Guide examines the opportunities andimplications of laws, regulations, and standards, focusing on three primary
regions: Europe, the United States, and China. The regulatory
developments in other regions have also been captured, and they arecollectively listed under ‘Global’ updates.
The EV Legislative & Incentives Guide has been created as a helpfulreference tool, listing the most significant announcements as well as
underlining the lessons to be learned from older/legacy publications sothat readers can concentrate on the relevant topics. Each piece oflegislation, best practice, incentive, and standard is described in the Guide
with its current status and timeline.

In addition, there are dedicated sections highlighting the various countryspecific incentives − tax benefits, registration fee waivers, charging
equipment tax credits etc. and their likely impact on the overall EV sales
volume.

6Note: This guide only highlights the actual regulatory activities and does notgive any recommendations. This guide's analytical and forward-looking
statements shouldn’t be construed as legal advice.

SectionContent

Birds Eye View

An overview of the key findings from SBD’s various Legislation
Guide, and adjacent reports.

The Basics

A brief overview of the different type of legal aspects (regulation,
legislation, standards etc.) covered in this report along with theregions in focus.

Executive
Summary

High-level overview of region-specific EV legislation, regulation,
incentives, best practices/guidelines. Different countries acrossthe world are trying to reach their goal of reduced emissions
through rapid electrification of vehicles. The regulatory roadmap
for each country varies significantly, as do the tools andmechanisms they use to achieve electrification targets.

Analysis

This section provides an understanding of key EV legislation andits impact on the industry and market. Some countries are seeing
a significant boost in EV sales due to support from government
policies and incentives, while others are struggling to create ameaningful adjustment.

Summary Tables

Summarizing the legislative activities identified in the associatedExcel spreadsheet in terms of their recency and status.

Next StepsCan SBD help you with any unanswered questions?
6

Example slides
from the report

Executive Summary

What? Snapshot of Key Regulatory/Legislative updates
Draft Introduced*

Legislation/Regulations recently enforced

China

Interim Regulations on the Administration of carbon Emission Rights Trading - The Regulationbuilds a basic institutional framework for the management of carbon emissions trading in six areas: 1. thelegal status and responsibilities of registries and trading organizations; 2. the scope of coverage of carbon
emissions trading, as well as the products, subjects and modes of trading; 3. the determination of key
emission companies; 4. the allocation of carbon emission allowances; 5. the compilation and verification ofemissions reports; 6. the clearing of carbon emission allowances and market trading

Nine departments: Several opinions on promoting the healthy and sustainable development ofurban public transportation - On the basis of ensuring the implementation of low valley electricity
prices for nighttime charging of new energy city buses in various regions, some periods of low valley
electricity prices can be set up during the daytime to guide new energy city buses to charge more during
these periods. The regulation also supports the construction of charging and swapping infrastructure for
eligible public bus and electric vehicles.

EuropeFit for 55 (partially enforced) - Fit for 55 is a package of legislative proposals introduced by theEuropean Commission aimed at reducing greenhouse gas emissions by at least 55% by 2030 compared to1990 levels and achieving climate neutrality by 2050. The proposals include revising the Emissions Trading
System, introducing a Carbon Border Adjustment Mechanism, increasing the share of renewable energy(enforced from 31st Oct 2023), promoting energy efficiency, setting emissions standards for new vehicles
and deal on charging and fueling stations for alternative fuels. The package will require significant changes
across various sectors and involve substantial investments in clean technologies and infrastructure.
Bi-directional regulation (under AFIR) - The implementation of both smart and bidirectional
recharging(V2G) reduces recharging expenses for consumers. All newly constructed or renovated publiccharging stations in the EU from April 13, 2024 onward should be equipped to facilitate smart recharging.

European Green Deal - This plan was proposed by the European Commission to transform the EU intoa sustainable and low-carbon economy by 2050. It aims to reduce greenhouse gas emissions, preserve
biodiversity, improve public health, and promote sustainable production and consumption. The plan
includes policies such as a Climate Law, Circular Economy Action Plan, Farm to Fork Strategy,
Biodiversity Strategy, Renovation Wave, Sustainable Finance Strategy, Sustainable batteries and a Just
Transition Mechanism. It is now being enforced, and EU member states are implementing measures tocreate a sustainable and resilient Europe. With the update on the new EU regulation on “Batteries andwaste batteries” from 1, July 2024, only rechargeable industrial and electric vehicle batteries for which acarbon footprint declaration has been established, can be placed on the market.

USA

Enforced/Published**

Legislation/Regulations recently introduced

Wireless Electric Vehicle Charging Grant Program Act of 2023 - Wireless Electric Vehicle Charging
Grant Program Act of 2023 legislation provides grants to entities for construction and improvement ofexisting wireless charging infrastructure and to publish an annual progress report to relevant committees
on the operation of wireless charging infrastructure. The latest action on 14 th July 2023 was “Referred to
the Subcommittee on Highways and Transit” by the Committee on Transportation and Infrastructure.
CARS (Choice in Automotive Retail Sales) - The CARs ACT aimed to block the EPA's proposal for more
stringent light-duty vehicle emission standards for MY27+.The bill includes two provisions: one to block
the EPA proposal outright, and another that would prevent the EPA from limiting automotive sales byengine type - effectively preventing the agency from enforcing an EV transition. The bill passed the Houseand has strong Senate support from Republicans and Dem. Senator Manchin. Though likely to fail in the
Senate or, if passed, get vetoed, the bill signals a Republican party agenda to limit regulatory authority on
vehicles - something to watch in 2024 elections. The EPA proposal on “Multi Pollutant Emissions Standards
MY27” was published in March 2024 before the CARS bill could be passed, though the bill is still active inCongress. A Republican Administration following the next election would be likely to continue the push to
restrict EPA programming and may even rollback the new standards, as the original Trump administration
did with the SAFE rule.
CAFE standards amendment - NHTSA is proposing a modification to the 2020 CAFE standards forpassenger cars and light trucks 2024 -2026 model year with the aim to raise the standards at a rate of 8%
per year instead of 1.5% per year previously established.

Multi-Pollutant Emissions Standards for Model Years 2027 and Later Light-Duty and MediumDuty Vehicles - On March 2024, the Environmental Protection Agency (EPA) finalized its new motor
vehicle emissions regulation for Model Years 2027 and later Light-Duty and Medium-Duty Vehicles,
introducing more stringent emissions standards. The EPA employs performance-based criteria, permittinga blend of technologies to comply with the limits, without mandating specific technologies forautomakers. These standards aim to further decrease harmful air pollutant emissions, utilizing
advancements in clean car technology.
Inflation Reduction Act (IRA) - The Inflation Reduction Act (IRA) was signed into law in August 2022
to combat inflation by promoting clean energy, reducing healthcare costs, and increasing tax revenues.
The IRA includes tax credits for the purchase of qualifying plug-in electric vehicles, investments inrenewable energy manufacturing facilities and provides alternative fuel refuelling property credits tobusinesses that are located in low-income or rural areas. Proposed interpretative guidance from
December 2023 would limit eligibility for these incentives: to be eligible, vehicles must not containbattery components manufactured or assembled by a ‘foreign entity of concern’ beginning in 2024;
vehicles may not contain critical minerals extracted, processed, or recycled by a ‘foreign entity ofconcern’ beginning in 2025. Under the proposed, clarified definition of ‘foreign entity of concern,’ 20+
models across multiple brands would lose tax credit eligibility.

8*In some regions (primarily outside the US) the word ‘issued’, ‘proposed’ are used for the legislations instead of introduced**Standards and Guidelines/Best Practices are often not enforceable by law. They are introduced and reviewed by the subject experts before being published.

8AnalysisⅼEuropeLegislation Overview

Europe – Legislation Overview
Legends

In Europe, most sustainability standards are established at EU level with a focus on incentives, and emission
legislation. Single countries instead apply different incentives and emission regulations to limit greenhouse gas
emissions.

2

1
1

EU

5

7

Countries

Regulations and Legislation
Regulatory
incentives/disincentives

Renewable Energy incharging infrastructure

Production of EV - Material
sourcing

Supply legislation

Charging Infrastructure
Deployment

Emission legislations

Production of EV - Material
sourcing

Supply legislation

Charging Infrastructure
Deployment

Others--Guidelines and Best Practices
Incentives

Renewable Energy incharging infrastructure-

More analysis in this chapter

Standards
Charging

Infrastructure

Others

AFIR

Green Deal and Fit for 55

99AnalysisⅼUSA

Incentives in detail

USA In Detail – Disincentives: Consumer/registration fees
Annual fee

Incentive Overview$150+$50 - $ 150

Up to $50

The Consumer fees/registration disincentive is the extra money that is being charged to the EV owners. There are about 30 States in the USA that hasregistration fees for EVs (as marked on the map). In addition to the registration fees, there are annual fees which are being taken from the EV owners. These
fees serve unappealing to customers while purchasing new energy vehicles. The maximum annual fee charged for Alternative fuel is up to $200, Also there arevariations (like the difference of fees in BEV, PHEV and HEV) amongst the states on the charge of this fee.

Details

What’s New?

Following is the list of states having some extra differences:•

Hawaii: Starting from July 1,
2025, EV owners may elect to
pay an annual mileage-based
road usage fee in lieu of paying
an additional registration fee.
The fee is $0.08 per mile, up to$50 per year. (Link)•

Tennessee: Beginning on
January 1, 2024, an EV fee
must be paid in addition to allother motor vehicle registration
fees prescribed by law. For all
EVs, from January 1, 2024, andprior to January 1, 2027, thefee is $200. (Link)•

Utah: Starting in 2024, thecommission will adjust theregistration fees for EVs. For
HEVs and PHEVs under
12,000lbs, the fee will be$21.75 for each hybrid electricmotor vehicle and $56.50 foreach plug-in electric vehicle.
(Link)

Jurisdiction

Additional Information

AlabamaAll-electric vehicle owners must pay an annual fee of$200

Arkansas

In addition to registration fees, the annual fee is $200
for all-electric vehicles.

Georgia$212.78 for non-commercial alternative fuelled vehicles($200 base fee)

Illinois

Flat fee that shall be based on an applicant’s
registration year for the vehicle's corresponding weightcategory

MichiganAn annual fee based on the Gross Vehicle Weight Rating(GRVW).

Missouri

Additional annual fuel decal fee for alternative fueled
passenger motor vehicles up to 18,000 lbs.

Ohio

In addition to standard registration fees, $200
additional annual fee for plug-in electric motor vehicles.

Wyoming

Owners of EVs must pay an annual decal fee of $200

State-wise disincentives in the US

Key Takeaways

10

Disincentives such as higher fees may make it more difficult for automakers to sell EVs, particularly in states where these fees are
significantly higher than those for gasoline or diesel vehicles. Consequently, if fewer EVs are sold in these states, there may be
reduced demand for components such as batteries, motors, power electronics, and associated software and services. This could
lead to reduced economies of scale and potentially slower innovation in the EV supply chain. However, the impact of disincentives
on OEMs and suppliers may be offset by other incentives and policies promoting the adoption of EVs.

10ⅼAnalysis

China

Incentives in detail

China In Detail – Vehicle purchase incentives
StatusIncentive Overview

Draft Introduced

Draft



Enforced

The vehicle purchase incentive supports EV buyers through cash-back or tax benefits, supporting the transition to new energy vehicles. Vehicle purchase
incentives are one of the primary factors in the significant EV sales growth in China. China led all other nations in terms of EV sales numbers with 153% growthin 2021 compared to 2020 and moving forward in 2022, the growth was 83% (from 2021). In 2023, EV sales in China increased by 37.9% compared to 2022.
The total number of EV sales for 2023 at 9.495 million.

What’s New?

Details
Jurisdiction

Incentive Identifier

Implication

HainanNotice on Encouraging the Application ofSubsidies for the Promotion and Application of
New Energy Vehicles

New energy operating vehicles can apply for a maximum of 30,000 ￥in operation service subsidies and a maximum of 2,000 ￥ in charging
fee subsidies

Guizhou

Several measures to accelerate the promotion
and application of new energy trucks

From 2024 to 2026, new energy trucks using ETC to drive on highways
in Guizhou will be given an 85% discount on tolls.

Jiangxi

Several Measures of Further Promoting andExpanding Consumption

In the second half of 2023, part of provincial development funds (100million yuan) will be arranged for EV coupons.

Jilin

Several measures to stabilize the provincial
economyBuyers who purchase a new EV will be given a subsidy of around 3,000
to 6,000 ¥.

Guangdong(Shenzhen)

Luohu District invested 100 million ￥ forautomobile consumption promotion activities

Buyers who purchase EVs from Nov. 13rd, 2023, to Jan. 31st, 2024,
will be given a subsidy of 5,000 to 15,000￥.

Henan(Zhengzhou)

Zhengzhou City issues 50 million yuan in car
vouchers

Buyers who purchase EVs from Jan. 1st, 2024, to Feb. 29th, 2024, will
be given consumption coupons of 2,000 to 3,000￥.

Shandong

Promote Economic consolidation and Accelerate
Green, low-carbon and high-quality
Development

The proportion of new and clean energy in new or renewed taxicabs
shall not be less than 80%. The first 2 hours of parking for new energy
vehicles will be waived.

Key Takeaways

11•

Since China declared that the development and uptake of new energy vehicles was a national priority, it has committed itself togenerous consumer subsidies, and the empowerment of province and city authorities to decide how to boost EV usage.

•Not only first-tier cities (Shanghai, Shenzhen, etc.) but also many second-tier and third-tier cities (Sanya, Shenyang, etc.) havestarted to provide subsidies for purchasing new energy vehicles to enhance the regional economy's development. Recently,
China has also introduced several vehicle purchase subsidies and charging subsidies for new energy operating vehicles.

•

For China’s Purchase tax
exemption policy for new energy
vehicles, the country will extend
its exemption of new energy
vehicles from purchase taxes tothe end of 2025 and extend its
tax reduction to the end of 2027.
(Link)•

Some first-tier cities, such as
Shanghai, provide a one-time
subsidy of 10000 ¥ to theindividual user who switch to EVs.
(Link)•On June 1, 2023, Suzhou andNanjing simultaneously
launched subsidy activities for
new energy vehicles. Bothprovide a subsidy up to 5,000 ¥per vehicle. (Link Link)•

In 2023 Q4, Hainan andGuizhou introduced subsidy
policies for new energy
operating vehicles, such astrucks. (Link Link)
11

GlobalSummary Tables

Global – Legislation/Regulation
Latest activity vs status
About the policy activity placement in the grid

Description of the standard

Central Electricity Authority(Measures relating to the
Safety and Electric Supply)
Regulations (India)

Chapter XI outlines additional safety requirements for EV
charging stations, including installing socket outlets atleast 800 mm above ground level and ensuring amaximum distance of 5 meters between the charging
point and the vehicle connection during charging. Portable
socket outlets are prohibited for EV charging.

Enforced June 2023.

Central Electricity Authority(Technical Standards forConnectivity of theDistributed Generation
Resources) Amendment
Regulations, 2019 (India)

General safety requirements pertaining to construction,
installation, protection, operation and maintenance ofelectric supply lines, Additional Safety requirements forelectric traction.

Enforced June 2023.

Electric Charging Service
Fees at Public Electric
Vehicle Charging
Stations ("Decree
182/2023") (Indonesia)

Minister of Energy and Mineral Resources issues Decree
182.K/TL.04/MEM.S/2023, setting service fees for public
EV charging stations at Rp. 25,000 for fast charging and
Rp. 57,000 for ultra-fast charging. Excludes VAT, subject
to biennial evaluations. Operators must submit activity
reports to the Minister, including fee details.

Enforced July 2023.

Acceleration of the Battery
Electric Vehicle
Program for ElectricTransportation (Indonesia)

Indonesia's new presidential regulation, PR No. 79/2023
dated 8 December 2023, enhances incentives for electricvehicle (EV) import and development. It amends PR No.
55/2019, extending the dEnforced December 2023.

Status3-12monthsOlder

Last updated

0-3months

Draft
Introduced

Key highlights

Draft

Enforced

Next
activity/milestone

Title of the standard•

The India Central Electricity Authority regulation for measures relating to the Safety and Electric Supply, in its chapter XI of the Regulation outlines safety provisions for Electric Vehicle Charging Stations,emphasizing design, installation, testing, certification, inspection, and compliance requirements. The chapter also underscores the necessity of fire prevention measures for such stations.

•India Central Electricity Authority regulation number 53, establishes standards for charging stations, prosumers, and individuals connected to the electricity system, along with regulations concerning theregistration of established charging stations. It outlines requirements for conducting studies prior to setting up charging stations and assessing grid capacity to meet energy demands.

•

Indonesia's Presidential Regulation No. 79/2023, issued on 8 December 2023, amends regulations regarding electric vehicles, extending the deadline for the 40% minimum local content requirement to2026
and postponing the threshold increase to 60% until 2027. This regulation also defines Battery-Based KBL vehicles as those powered by electric motors, receiving power directly from onboard batteries
12or external sources, aiming to boost EV import and development incentives.
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