Governors Spotlight: Electric Cars, Climate Initiatives, Improper Usage of COVID Relief Dollars & More

IL Incentivizes Electric Car Manufacturing:

Saying he wants to see Illinois “become a leader in the clean transportation revolution,” Gov. J.B. Pritzker (D) signed (HB 1769), a bill offering a wide range of incentives intended to boost the Prairie State’s production of electric cars.

The governor said the legislation will boost more than just production of electric passenger cars.

“Electric school buses. Electric municipal buses. Electric delivery trucks. Electric 18-wheelers. And so much more,” he said at a news conference announcing the signings.

The measure, which passed the General Assembly with near unanimous bipartisan support in October, includes tax credits for income tax withholding, training costs, tax exemptions, and investment credits, as well as allows local jurisdictions to abate property taxes for EV projects, with priority given to underserved communities and communities impacted by energy transitions.

The credits will range from 75 to 100 percent of income tax withheld for new jobs created, or 25 to 50 percent for retained employees. The variations are dependent on factors like company location and the number of employees hired. Companies could also claim a 10 percent credit for training expenses.

“It’s no secret that transportation is the leading source of climate pollution - so we’re incentivizing green economic development,” Pritzker added in a statement. “It’s good for business - and it’s the right thing to do. The Reimagining Electric Vehicles Act is about acknowledging there doesn’t need to be a trade-off between a cleaner environment and more jobs. We can do both, and today we take a giant leap forward in that quest.” (CHICAGO TRIBUNE, CHICAGO SUN-TIMES, ILLINOIS GOVERNOR’S OFFICE)

CT, MA Govs Drop Climate Initiative:

Citing high gas prices, Connecticut Gov. Ned Lamont (D) said he will no longer pursue efforts to join a multi-state carbon reduction coalition.

Constitution State lawmakers earlier this year rejected Lamont’s effort to join the Transportation Climate Initiative (TCI), which would have capped carbon emissions from gasoline and required gas suppliers to buy carbon credits. The governor had been pushing lawmakers to reconsider, but with gas prices at a seven-year high he had to concede there was no chance of getting their approval on something he acknowledged would raise those prices even higher.

“Look, I couldn’t get that through when gas prices were at a historic low, so I think the legislature has been pretty clear that it’s going to be a pretty tough rock to push when gas prices are so high, so no,” Lamont told reporters last week.

With Connecticut out, Massachusetts Gov. Charlie Baker (R) followed suit, announcing on Thursday that his support for the project was always dependent upon multiple states joining in, and with that no longer likely the TCI “is no longer the best solution for the Commonwealth's transportation and environmental needs.”

The withdrawal of Lamont and Baker leaves Rhode Island Gov. Dan McKee (D) as the last governor still in support of the measure. The road there, however, looks just as daunting – Ocean State lawmakers refused to take up the proposal last session and do not seem any more inclined to do so next year. (HARTFORD COURANT, CONNECTICUT NEWS JUNKIE, WSHU [WESTPORT], STATE HOUSE NEW SERVICE [BOSTON], GOLOCALPROV [PROVIDENCE])

NY Rescinds Cuomo Book Deal:

On a 12-1 vote, the New York Joint Commission on Public Ethics rescinded its approval of former Gov. Andrew Cuomo’s (D) memoir, requiring him to reapply for approval or face returning the $5.1 million he was paid to author “American Crisis: Leadership Lessons from the Covid-19 Pandemic.” Cuomo has since been accused of using staff to help write and edit the book, something his legal counsel at the time told the Commission would not happen. Cuomo can reapply for approval, but if that is rejected the Commission could seek to force him to return the profits from the book’s sales. (POLITICO, ALBANY TIMES-UNION)

Audit Says IA Gov Improperly Used COVID Relief Dollars for Salaries:

A state audit has concluded that Iowa Gov. Kim Reynolds (R) improperly used nearly $450,000 in federal COVID-19 relief funds to pay salaries for 21 staff members for three months last year and then hid the spending by passing it through the state Department of Homeland Security and Emergency Management. The governor’s office said the funds were used because the staff was immersed in pandemic management duties, but it ignored two requests for documentation to support the claim. (ASSOCIATED PRESS)

NM Gov Says Tax Cuts on Her Agenda for 2022:

New Mexico Gov. Michelle Lujan-Grisham (D) said she will propose reducing the state’s gross receipts tax rate by 0.25 percent, to under 5 percent, a move she said will save New Mexicans an estimated $145 million annually. The proposal will go before lawmakers in January. (ASSOCIATED PRESS)

UT Gov Says ‘Pump the Brakes’ on Banning Books:

Utah Gov. Spencer Cox (R) said his fellow Republicans should “pump the brakes” on pulling or banning books from school libraries. “I’m not saying every book should be in every classroom,” the governor said during his monthly PBS news conference. “There are probably some books that shouldn’t be in our schools. But let’s be thoughtful about it. Let’s take a step back, take a deep breath and make sure that we’re not doing something we’ll regret.” (KSL.COM [SALT LAKE CITY)

-- Compiled by RICH EHISEN