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Home Source documents Energy, Communications & Cybersecurity Subcommittee Meeting Packet, December 12, 2023

Energy, Communications & Cybersecurity Subcommittee Meeting Packet, December 12, 2023

Summary

A meeting packet of the Energy, Communications & Cybersecurity Subcommittee, part of the Florida House of Representatives Commerce Committee, for Tuesday, December 12, 2023, at Reed Hall (102 HOB). The agenda lists consideration of HB 551, Designation of Eligible Telecommunications Carriers, by Barnaby, and presentations on Automotive Electrification Technologies. The staff analysis dated 12/7/2023 states that HB 551 authorizes the Public Service Commission to designate wireless providers as eligible telecommunications carriers for the limited purpose of providing Lifeline service, and does not appear to have a fiscal impact on state or local governments. The packet also holds the bill text, Amendment No. 1 and presentation slides from Robert Wimmer and Brett A. Morgan.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Cite this document

“Energy, Communications & Cybersecurity Subcommittee Meeting Packet, December 12, 2023.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-12-12-3226-energy-communications-cybersecurity-subcommittee-meeti-8d416072bf/, SHA-256 ab1b874b8e5d9a57d8aeca00496e366d94b2beccf0fab96cc5b8420ae6ae7914.

Full text

               Energy, Communications &
              Cybersecurity Subcommittee
                  Tuesday, December 12, 2023
                      1:00 PM - 3:00 PM
                     Reed Hall (102 HOB)


                      Meeting Packet




Paul Renner                                    Mike Giallombardo
Speaker                                                    Chair
                    The Florida House of Representatives
                                           Commerce Committee
                   Energy, Communications & Cybersecurity Subcommittee
Paul Renner                                                                                    Mike Giallombardo
Speaker                                                                                                    Chair



                                           Meeting Agenda
                                       Tuesday, December 12, 2023
                                           1:00 pm – 3:00 pm
                                          Reed Hall (102 HOB)



  I.   Call to Order

 II.   Roll Call

III.   Welcome and Opening Remarks

IV.    Consideration of the following bill(s):
          • HB 551 Designation of Eligible Telecommunications Carriers by Barnaby

       Presentations on Automotive Electrification Technologies

 V.    Closing Remarks

VI.    Adjournment




                   303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
                                                   (850) 717-4870
HB 551
                                  HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #:     HB 551 Designation of Eligible Telecommunications Carriers
SPONSOR(S): Barnaby
TIED BILLS:       IDEN./SIM. BILLS: SB 478

  REFERENCE                                                   ACTION                  ANALYST            STAFF DIRECTOR or
                                                                                                         BUDGET/POLICY CHIEF

  1) Energy, Communications & Cybersecurity                                           Bauldree           Keating
     Subcommittee

  2) Commerce Committee


                                              SUMMARY ANALYSIS
The federal Lifeline program (Lifeline) provides telecommunications service discounts for qualifying low-income
consumers. Consumers may qualify to participate in Lifeline either through program-based or income-based
eligibility standards. Qualifying households can receive a discount on their monthly phone or broadband
Internet bills from providers which have been designated as eligible telecommunications carriers (ETCs).

Pursuant to federal law, state commissions are granted authority to designate a company as an ETC. In
Florida, the Public Service Commission (PSC) oversees Lifeline. Florida law does not authorize the PSC to
designate wireless carriers as ETCs. If a company is not subject to the jurisdiction of the state commission, the
company must petition the Federal Communications Commission (FCC) for ETC designation.

The bill authorizes the PSC to designate wireless providers as ETCs for the limited purpose of providing
Lifeline service.

The bill does not appear to have a fiscal impact on state or local governments.

The bill provides that it will take effect upon becoming law.




This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
STORAGE NAME: h0551.ECC
DATE: 12/7/2023
                                                  FULL ANALYSIS

                                           I. SUBSTANTIVE ANALYSIS

   A. EFFECT OF PROPOSED CHANGES:
        Present Situation

        In 1985 the Lifeline program (Lifeline) was created by federal law, providing telecommunications
        service discounts for qualifying low-income consumers. Lifeline’s initial goal was to ensure that all
        Americans had the opportunity and security that basic phone service provides. Over time, that goal has
        evolved to include broadband service. Qualifying households can receive up to a $9.25 discount on
        their monthly phone or broadband Internet bills from wireline service providers that have been
        designated as eligible telecommunications carriers (ETCs). Alternatively, consumers may choose to
        receive monthly wireless minutes and/or measured data service from designated wireless providers. 1

       Consumers may qualify to participate in Lifeline either through program-based or income-based
       eligibility standards. Program-based eligibility is determined by a customer’s enrollment in specific
       qualifying programs. Customers can qualify for Lifeline by being enrolled in any of the following
       programs:
             Supplemental Nutrition Assistance Program (SNAP)
             Medicaid
             Federal Public Housing Assistance
             Supplemental Security Income
             Veterans or Survivors Pension Program
             Bureau of Indian Affairs Programs, including Tribal Temporary Assistance to Needy Families,
                 Head Start Subsidy, and National School Lunch Program. 2

       Consumers whose total household income is less than 135 percent of the Federal Poverty Guidelines
       may participate in Lifeline under the income-based standard. The Federal Poverty Guidelines are
       annually updated by the United States Department of Health and Human Services. 3

        Florida Lifeline ETC Designation

       Pursuant to federal law, state commissions 4 are granted authority to designate a company as an ETC. 5
       In Florida, the Public Service Commission (PSC) oversees Lifeline. As permitted by federal law, the
       PSC designates telecommunications companies 6 as ETCs pursuant to standards outlined in federal
       law.7, 8 Telecommunications providers must be designated as an ETC in order to participate in the
       Lifeline program.9 Florida law requires that an ETC must provide Lifeline service to qualified residential
       subscribers as defined in the ETC's published schedules. 10

       Designation of Wireless Carriers

       Florida law does not authorize the PSC to designate commercial mobile radio service providers
       (wireless carriers) as ETCs. If a wireless carrier is not subject to the jurisdiction of the state
       commission, the company must petition the Federal Communications Commission (FCC) for ETC

1 Public Service Commission (PSC), 2022 Florida Lifeline Assistance Report, December 2022,          p. 3.,
https://www.floridapsc.com/pscfiles/website-files/PDF/Publications/Reports/Telecommunication/LifelineReport/2022.pdf.
2 Id.
3 Id. at 4.
4 The term state commission means the commission, board or official (by whatever name designated) that, under the laws

of any state, has regulatory jurisdiction with respect to intrastate operations of carriers. 47 C.F.R. § 54.5 (1997).
5 Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov. 28, 2023).
6 A telecommunications company does not include commercial mobile radio service providers. S. 364.02(13), F.S.
7 S. 364.10(1)(a), F.S.
8 See 47 C.F.R. § 54.5 (1997).
9 Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov. 28, 2023).
10 S. 364.10(1)(a), F.S.
STORAGE NAME: h0551.ECC                                                                                        PAGE: 2
DATE: 12/7/2023
          designation.11 The PSC indicates that, since 2011, there have been 37 ETC applications by wireless
          carriers to the FCC for which no action has been taken.12

          Effect of the Bill

          The bill authorizes the PSC to designate wireless providers as ETCs for the limited purpose of
          providing Lifeline service.

     B. SECTION DIRECTORY:
          Section 1: Amends s. 364.10, F.S., relating to Lifeline service.

          Section 2: Provides that the bill is effective upon becoming law.


                             II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT

     A. FISCAL IMPACT ON STATE GOVERNMENT:

          1. Revenues:
                None.

          2. Expenditures:
                None.13

     B. FISCAL IMPACT ON LOCAL GOVERNMENTS:

          1. Revenues:
                None.

          2. Expenditures:
                None.

     C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
          According to the PSC, allowing wireless providers to petition the PSC for ETC designation may result in
          a more expedited application process, which may likely lead to more companies offering service with a
          Lifeline discount.14 The bill does not alter the pool of eligible consumers.

     D. FISCAL COMMENTS:
          None.

                                                   III. COMMENTS

     A. CONSTITUTIONAL ISSUES:

          1. Applicability of Municipality/County Mandates Provision:
               Not Applicable. The bill does not appear to affect county or municipal government.

          2. Other:


11 Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov.   28, 2023).
12 Id.
13 Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 2 (Nov.   28, 2023).
14 Id. at 2.
STORAGE NAME: h0551.ECC                                                                                    PAGE: 3
DATE: 12/7/2023
          None.

   B. RULE-MAKING AUTHORITY:
       The bill does not authorize or require rulemaking.

   C. DRAFTING ISSUES OR OTHER COMMENTS:
       None.


                          IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
   Not applicable.




STORAGE NAME: h0551.ECC                                                 PAGE: 4
DATE: 12/7/2023
F   L     O    R    I   D   A    H   O   U   S   E     O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




           HB 551                                                                                                2024




    1                                         A bill to be entitled
    2               An act relating to designation of eligible
    3               telecommunications carriers; amending s. 364.10, F.S.;
    4               revising the definition of the term "eligible
    5               telecommunications carrier"; authorizing the Public
    6               Service Commission to designate certain entities as
    7               eligible telecommunications carriers for a specified
    8               purpose; providing legislative intent; providing an
    9               effective date.
10
11         Be It Enacted by the Legislature of the State of Florida:
12
13                  Section 1.        Present paragraph (i) of subsection (2) of
14         section 364.10, Florida Statutes, is redesignated as subsection
15         (4) of that section, subsection (3) is added to that section,
16         and paragraph (a) of subsection (1) of that section is amended,
17         to read:
18                  364.10      Lifeline service.—
19                  (1)(a)      An eligible telecommunications carrier shall
20         provide a Lifeline Assistance Plan to qualified residential
21         subscribers, as defined in the eligible telecommunications
22         carrier's published schedules. For the purposes of this section,
23         the term "eligible telecommunications carrier" means an entity a
24         telecommunications company, as defined by s. 364.02, which is
25         designated as an eligible telecommunications carrier by the

                                                         Page 1 of 2

        CODING: Words stricken are deletions; words underlined are additions.
                                                                                                                hb0551-00
F   L   O   R    I   D   A      H   O   U   S   E   O    F     R    E   P    R   E   S   E   N   T   A   T    I   V   E   S




        HB 551                                                                                                2024




26      commission pursuant to 47 C.F.R. s. 54.201 and this section.
27               (3)(a)        The commission has the power and authority to
28      designate an entity, upon petition and in accordance with 47
29      C.F.R. s. 54.201, as an eligible telecommunications carrier,
30      provided that such entity is:
31               1.      A telecommunications company; or
32               2.      A commercial mobile radio service provider.
33               (b)         This legislative authority is intended to be
34      sufficient to enable the commission, for the limited purpose of
35      providing Lifeline service under this section, to approve any of
36      the types of entities specified in paragraph (a) as an eligible
37      telecommunications carrier. The commission may exercise such
38      authority in addition to the commission jurisdiction otherwise
39      specified in this chapter.
40               Section 2.         This act shall take effect upon becoming a law.




                                                      Page 2 of 2

     CODING: Words stricken are deletions; words underlined are additions.
                                                                                                             hb0551-00
        Energy, Communications & Cybersecurity Subcommittee
                       HB 551 by Rep. Barnaby
          Designation of Eligible Telecommunication Carriers

                             AMENDMENT SUMMARY
                               December 12, 2023


Amendment 1 by Barnaby (lines 39-40 with title amendment):

   •   Clarifies the Public Service Commission’s regulatory jurisdiction with respect to
       commercial mobile radio service providers (i.e. wireless service providers).
                                                COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                         Bill No. HB 551   (2024)
       Amendment No. 1




               COMMITTEE/SUBCOMMITTEE ACTION
       ADOPTED                          (Y/N)
       ADOPTED AS AMENDED               (Y/N)
       ADOPTED W/O OBJECTION            (Y/N)
       FAILED TO ADOPT                  (Y/N)
       WITHDRAWN                        (Y/N)
       OTHER


1      Committee/Subcommittee hearing bill:         Energy, Communications &
2      Cybersecurity Subcommittee
3      Representative Barnaby offered the following:
4
5           Amendment (with title amendment)
6           Between lines 39 and 40, insert:
7           (c)    Nothing in this subsection shall confer upon the
8      commission any regulatory jurisdiction over commercial mobile
9      radio service providers that have been previously designated as
10     eligible telecommunications carriers prior to the enactment of
11     this subsection.
12
13             -----------------------------------------------------
14                          T I T L E    A M E N D M E N T
15          Remove line 8 and insert:


     134723 - h0551 - line 39.docx
      Published On: 12/11/2023 5:46:36 PM
                                     Page 1 of 2
                                           COMMITTEE/SUBCOMMITTEE AMENDMENT
                                                    Bill No. HB 551   (2024)
       Amendment No. 1


16     purpose; providing legislative intent; providing construction;
17     providing an




     134723 - h0551 - line 39.docx
      Published On: 12/11/2023 5:46:36 PM
                                     Page 2 of 2
Presentation 1
Meeting Customer Automotive Needs
           Sustainably
  Florida House Energy, Communications & Cybersecurity Subcommittee
                            12/12/2023




                          Robert Wimmer
                               Director
                      Toyota Motor North America
    Our Environment Commitment


     TOYOTA II L~ • ••                                                                                               Well

     ENVIRONMENTAL                                                                                                    2

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                                       CHALLENGE    3       CHALLENGE   4     CHALLENGE    5       CHALLENGE    6            Gasoline   Electricity   Hydrogen
                                                             Challenge of        Challenge of        Challenge of
                                                                                                                       2
          New vehicle                        Plant                                                  Establishing a
                                                            Minimizing and      Establishing a
           Zero CO2                        Zero CO2                                                 Future Society
                                                              Optimizing       Recycling-based
      Emissions Challenge             Emissions Challenge                                            in Harmony
                                                             Water Usage     Society and Systems

                                                                                                                     Wheel
                                                                                                     with Nature




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TOYOTA MOTOR
NORTH AMERICA               Sustainability & Regulatory Affairs
                                                                                                   Location - Date                                               2
    Electrification = Variety & Consumer Choice
                                PEV

                Plug-in Electric Vehicle
                    _______A.._____
                (                              '\
               BEV                            PHEV                         HEV                             FCEV
                                                                                                                               The Right Vehicle
                                                                                                                               at the Right Time
     Battery Electric Vehicle    Plug-in Hybrid Electric Vehicle   Hybrid Electric Vehicle       Fuel Cell Electric Vehicle



                                               ICE
                                                                                                                               in the Right Place
                                                                                                                                Satisfy consumer needs in all markets
                                                                                                                                Rapid expansion of electrified vehicles


                                                                                                                              Sustainable Decarbonization




TOYOTA MOTOR
NORTH AMERICA          Sustainability & Regulatory Affairs
                                                                                             Location - Date                                                               3
    Current U.S. Electrified Portfolio

                                                                                                                                                                                                           Hydrogen
                                                                          Crown
                                                                                                                                                                                       Prius Prime         Fuel Cell
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                                                        Sequoia                   Tundra i-Force Max



                                         Toyota has sold more electrified vehicles than
                                                all other automakers combined
                                                                       (5.4M US, 23.4M global)


                    Sustainability & Regulatory Affairs
TOYOTA MOTOR
NORTH AMERICA
                                                                                      Location - Date                                                                                                                                               4
   Electrification Announcements
                          Electrified option for every model
                          Electr'f1ed optio for every model
                          Production   begins at $13.9B US battery manufacturing plant
                          Production begins a 13.98 US bat ery ma ufactu g plant
                                   10
                                   10 new
                                        ew BEV
                                           BEV models
                                                models
                                   Next-generation
                                     ext-generatio fuel
                                                    fue cell
                                                         cell system,
                                                              system, half
                                                                      haftthee cost
                                                                               cost and
                                                                                    and 20%
                                                                                        20% more
                                                                                            more range
                                                                                                  range
                                   1.5M
                                   1.5M BEVs/year
                                         BEVs/year sold
                                                     sold globally
                                                          globally


                                             Solid-state
                                             Solid-state batteries
                                                         ba teries with
                                                                   with 20%
                                                                        20% more
                                                                            more range
                                                                                  ra ge


                                                      Cumulative
                                                       Cumula ive investment
                                                                    investme >$70B > 708 onon HEVs,
                                                                                              HEVs PEVs,
                                                                                                      PEVs, FCEVs
                                                                                                            FCEVs
                                                      200,000
                                                       200,000 fuel
                                                                fuel cell
                                                                      cell cars,
                                                                            cars trucks,
                                                                                  trucks buses
                                                                                          buses sold
                                                                                                 sold
                                                      3.5M
                                                       3.5M BEVs/year
                                                            BEVs/yearsold  sold globally
                                                                                 globally
                                                      Next-generation
                                                        ex -genera ionfuel
                                                                       fuel cell
                                                                             ce Isystem
                                                                                  systemreach
                                                                                         reach 100k/year
                                                                                                100k/yearproduction
                                                                                                          produc ion
TOYOTA MOTOR    Sustainability & Regulatory Affairs
NORTH AMERICA                                          Location - Date                                              5
    Sustainable use of Battery Resources
  Li-Ion battery materials and supply-chain insufficient to meet global needs

  New metric => CO2 reduction per kw-hr of battery

                            CO2 Reduction from 100kw-hr of battery




TOYOTA MOTOR
NORTH AMERICA   Sustainability & Regulatory Affairs
                                                      Location - Date           6
    Heavy-Duty Fuel Cell Activities


  Initial
Prototypes




                                                                        HD Fuel Cell System Assembly in the US
  10 Truck
    Pilot




Production
  Intent


                                                                            HD Hydrogen Fueling Stations
TOYOTA MOTOR
NORTH AMERICA   Sustainability & Regulatory Affairs
                                                      Location - Date                                            7
    Other Fuel Cell Applications


                                                                        Tri-Gen Station (Long Beach, CA)



   Small Stationary Power              Large Stationary Power
    (also for EV charging)                 (1MW, NREL)




        Utility Tractor Rig               Electrolyzer to               Green H2, electricity & heat from biogas
           (Port of LA)                    produce H2

TOYOTA MOTOR
NORTH AMERICA   Sustainability & Regulatory Affairs
                                                      Location - Date                                              8
    Low Carbon Drop-in Liquid Fuels (LCLF)


          WtW CO2 Benefit of LCLF by Powertrain (example)

                                      BEV => 20-25% CO2 reduction
                                22%
 PHEV                                   33%
                                          36%

                                          36%                                                        Toyota’s 1200 Mile LCLF “Road Trip”
     HV                                                    56%
                                                              60%

                                                             60%
     ICE                                                                                93%
                                                                                              100%


           0%               20%           40%           60%                   80%       100%
                ■   LCLF                  ■   E15                        ■   Gasoline
                    40% CI Reduction          7% CI Reduction


TOYOTA MOTOR
NORTH AMERICA        Sustainability & Regulatory Affairs
                                                                    Location - Date                                                    9
                             Sustainable Vehicle Decarbonization Requires
                             - All technology options
                             - Accelerated vehicle electrification
                             - Low Carbon Drop-in Liquid Fuels



                                        Thank You for Your Attention

                                                robert.wimmer@toyota.com

                                                       202-463-6843




TOYOTA MOTOR
NORTH AMERICA   Sustainability & Regulatory Affairs
                                                      Location - Date       10
Presentation 2
             ,.




The Transition to EVs:
A Dealers Perspective
   Brett A. Morgan
Who am I?
Brett A. Morgan

• 20 years in the Automotive Space
• CEO, Morgan Automotive Group
• We represent 66 franchised retail locations
• All are within the state of Florida
• 29 unique brands represented
Furthermore
Full Disclosure: My daily driver has been a full EV since December of 2021

• I have overseen all efforts related to EV related infrastructure at Morgan

• We have over 30 new models of full EVs currently for sale within our stores

• I have a level 2 charging station in my home for my own EVs

• I am a graduate of the NADA Dealer Academy
My Fear
• The narrative around EV adoption has become highly political

• I am highly fearful of federal government mandates and controls removing
  consumer choice from the equation, forcing us to stock and sell products that
  consumers do not wish to buy

• I am also fearful that practical stepping stones such as hybrid and plug in hybrids
  are being disregarded in the greater conversation as we move towards lower
  tailpipe emissions

• Even our existing stock of EVs are much slower turning than current Hybrid and
  ICE Models, meaning customers don’t want what we currently have (Case Study)
EPA 2032 Mandate: Why I have become vocal
• The EPA has proposed emissions standards that would effectively
  require 67.5% of US Vehicle Sales to be electric by 2032
• This is unrealistic to say the least and would exacerbate many current
  issues as they relate to EV adoption:
   • Affordability in Transportation
   • Insufficient Charging Infrastructure
   • Electrical Grid Complications
   • Raw material sourcing for Lithium Battery Production
   • The ability of legacy manufacturers and dealerships to be profitable
Current EV Sales Leaders by State
• The EPA would be counting on a            Figure 4: 1H 2023 EV share of new passenger car sales In select states
  massive increase in EV adoption in
  less than 10 years time                               Ohio
                                                      Texas
                                                                          4%
                                                                                 6%

• Currently only 9 states (outside of              Minnesota
                                              North Carolina
                                                                                  7%
                                                                                  7%
  California) have higher than a 10%              New York                        7%
  EV share of new car sales (all less                Illinois                     7%

  than 20%)
                                                      Florida                     7%
                                                     Georgia                      7%
                                                    Vermon t
• Many of these current leaders are
                                                                                      8%
                                                     Virginia                              10%
  made up of CARB states                            Maryland
                                              Massachusetls
                                                                                           10%
                                                                                             11%
    • California, Washington, Vermont,          New Jersey                                         13%
      Rhode Island, Pennsylvania, Oregon,         Colorado                                         13%

      New York, New Mexico, New Jersey,              Nevada
                                                      Hawan
                                                                                                     14%

      Massachusetts, Maryland, Maine,
                                                                                                       15%
                                                    Oregon                                                   17%
      Delaware, Colorado, Connecticut and        Washington                                                   18%
      DC                                           California                                                             25%

                                            Source: Experian Automotive, BloombergNEF. California New Car Dealers Association. Note:
                                            values rounded to nearest percent.
Has the train already left the station?
• In summary California (within the past 50 years) has leveraged what began as a
  unique smog problem into becoming a global leader in Greenhouse Gas Policy
• There have been many attempts to reduce CA’s authority in this matter, but my
  current production and sales concerns are largely based on past administrations
  allowing California policy to govern standards related to tailpipe emissions
• Under Biden (who reinstated California’s “Clean Air Act” waiver), California opted
  for “retroactive” enforcement of policy putting many manufacturers in a real bind
  (For Example: Stellantis with their Chrysler, Dodge, Jeep, Ram brands)
• Stellantis is unable to meet requirements within CARB state sales alone
   • Result: The Dodge Charger and Challenger are in their last year with an internal combustion
     engine; increased production of the Jeep Wrangler 4xe PHEV that Florida consumers REALLY
     don’t want
       Case Study: “Popular EV Sales in 2023”
                             Total                               Average NC
    Hyundai loniq 5 / 6     Sales '23   In Stock   Days Supply   Days Supply
Hyundai of Fort Myers          19         14           246           24
Brandon Hyundai {Tpa)          52         31           199           36


                             Total                               Average NC
I
      Kia EV6& EV9          Sales '23   In Stock   Days Supply   Days Supply
IKia of Orange Park (Jax)      16         10           208           44


                             Total                               Average NC
I
          Niro EV           Sales '23   In Stock   Days Supply   Days Supply
IKia of Orange Park (Jax)       6          4           222           44
       Case Study: “Popular EV Sales in 2023”
f                          Total                              Average NC
     Volkswagen ID.4     Sales '23   In Stock   Days Supply   Days Supply
VW of North Tampa           34          10          98            33
VW of Gainesville           19         11           193           55


                           Total                              Average NC
       Ford Mach-E       Sales '23   In Stock   Days Supply   Days Supply
Gator Ford                   3           7          779           45
Ford of Port Richey          9         10           371           39


                           Total                              Average NC
    Ford F150 Ughtning   Sales '23   In Stock   Days Supply   Days Supply
Gator Ford                   4           5          417           45
Ford of Port Richey         10          4           133           39
Florida’s EV Consideration vs the Nation
Nationally. EV consideration is trend ing down at around 25% for 04. EV considera tion in Florida is lower than national average,
currently trending at 15%, down significantly from 23% in 03
                                                                             Source: Cars Commerce November 2023

            NATIONAL: 2023 EV Consideration                                           FLORIDA: 2023 EV Consideration
      ■ Not at alVnot very likely   ■ Somewhat likelyAikely/very likely        ■ Not at alVnot very likely   ■ Somewhat likelyAikely/very likely




     Q1 2023             Q22023            Q32023         Q4 2023 (through     01 2023            Q22023            Q32023         Q4 2023 (through
                                                               11/17)                                                                   11/17)
 Why we need to slow our roll to EVs
• US Policy (now) is forcing the hand of Car Manufacturers to produce more EVs than US consumers want

• Consumer adoption of EVs will take education and organic adoption will take time

• Federal tax incentives (at a large cost) have been largely enjoyed by early EV adopters, but these incentives have not
  influenced those slow to adopt

• EVs are not profitable for the legacy manufacturers to make at this time and when they take time to sell, they aren’t
  profitable for retail dealers to sell

• We need time to develop charging infrastructure

• We need time for battery technology to grow in efficiency and for EV ranges to improve

• We are selling a false narrative that in many ways is unproven (such as EVs are much cheaper to maintain)


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