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In 1987, Oregon adopted “She Flies With Her Own Wings” as the state motto. If the state continues to take the electric road, perhaps that motto could be changed to “She Drives With Her Own Electricity.”

A report submitted to Gov. Ted Kulongoski last week by the Alternative Fuel Vehicle Infrastructure Working Group says electric vehicles represent the greatest opportunity for the state to create jobs, and adopt a new fuel to meet the state’s ambitious emission reduction goals.

But Multnomah County Commissioner Jeff Cogen, chairman of the working group, said he is concerned what may happen after changes are made to the Business Energy Tax Credit, Oregon’s most important competitive resource for attracting businesses.

“The piece of the BETC that is important for electric vehicles is the piece where credits are given to manufacturers,” Cogen said. “They need to get that kind of incentive. It’s understandable why changes need to be made, but we can’t make changes to the goose that lays our golden eggs.”

Cogen and authors of the report say the state is ahead of the curve in preparing for a future influx of electric vehicles. Oregon has the highest percentage of hybrid vehicle owners in the country, existing EV charging infrastructure and EV-related businesses such as vehicle manufacturers Arcimoto and Brammo, and makers of embedded electronics such as Intel.

And Jillian Schoene, spokeswoman for Kulongoski, said the state will see the EV market develop even more this summer when eTec and Nissan deploy several hundred all-electric Nissan Leaf vehicles in Portland, Salem and Corvallis.

“Companies can look at Oregon and know customers here want to buy vehicles (that pollute less),” Schoene said. “That’s why eTec chose Oregon in the first place. We are receptive to new technologies.”

But competition to attract EV-related companies is fierce. The report refers to an example in which an unnamed Southern state paid $75 million up front to refurbish a factory to attract a new automotive start-up. The state also offered the company $200 million in tax breaks.

In order to maintain Oregon’s competitiveness, the report’s authors recommend the Legislature adopt an electric vehicle manufacturing component into the BETC; the Legislature rejected such a provision in 2009. Adding EV manufacturing to the BETC will be discussed during the current legislative session, according to Cogen.

“BETC has been really effective at establishing our leadership in the clean energy sector,” Cogen said. “When it comes to incentives, we don’t have the money that other states like Ohio and Michigan can put on the table. I’m hopeful they make these (BETC) changes while not throwing the baby out with the bathwater.”

Another recommendation in the report is to create a Transportation Electrification Tax Credit, which would be used for electric vehicles and infrastructure. Schoene said it is too early in the process to say how such a credit would work, but that it is something the state will look at in the near future.

“Right now, if you and I purchased an electric vehicle, we would get a $1,500 state tax credit in addition to what the federal government offers,” Schoene said. “We are looking at expanding that tax credit.”

But despite tax credits, prices for electric vehicles remain high. The retail price for a Nissan Leaf, for example, is expected to be approximately $28,000. But Cogen said the cost of an electric vehicle can be recouped over a car’s life cycle, and more easily for fleets of vehicles. The report directs the state to set purchase standards for state-funded fleets of passenger cars and light-duty trucks.

“EVs cost more up front than gas vehicles,” Cogen said. “But for fleets, it’s about life-cycle costs. If you average out the life cycle of a car, electricity is less expensive than gas as a way to power vehicles.”

Some would say the state can’t afford not to invest in the electric vehicle industry. The report says that as a state, consumers spend $12 billion on fossil fuels per year.

“Our challenge right now is understanding the opportunity we have in front of us, and figuring out which investment we need to take advantage of,” Cogen said. “With this report, we’ve produced a real road map. I hope we take it.”