Proposed National Energy Transition & Automotive Modernization Act

Preamble:
Recognizing the strategic imperative to achieve energy independence, stimulate economic growth, protect public health, and contribute to the global fight against climate change, the Republic of Haiti hereby establishes this comprehensive policy to transform its energy and transportation sectors. This policy is founded on the principles of sustainability, economic justice, and incremental, manageable change.

Policy Goals:

1. Automotive Market Transformation: Reduce and eventually eliminate the importation of used, high-emission vehicles while accelerating the adoption of Electric Vehicles (EVs).

2. National Electrification: Power all public infrastructure and encourage the powering of homes with renewable energy sources, primarily solar and wind.

3. Industrial Power Generation: Develop our domestic hydroelectric potential to provide stable, low-cost power for industrial growth and national development.

4. Respect for Existing Commitments: All transitions will be structured to honor the terms of existing contracts and concessions, with a focus on partnership and renegotiation where mutually beneficial.

Strategy for Implementation

The implementation will be phased over a 15-year horizon, with clear benchmarks and a focus on building infrastructure and capacity first.

Phase 1: Foundation & Incentives (Years 0-5)

This phase focuses on creating the enabling environment for change without disruptive mandates.

1.1. For Goal 1 & 2 (Transitioning to Electric Vehicles):

• Tiered Import Tax Structure:

  • Immediate Action: Implement a steeply progressive import tax on all internal combustion engine (ICE) vehicles, based on age and emissions. Vehicles older than 8 years will face a prohibitively high tax. Vehicles between 5-8 years will face a significant tax increase.

  • Incentive for New & Electric: Eliminate all import duties and taxes for new, fully electric vehicles and electric trucks for a period of 5 years. Apply a reduced tax rate for new, fuel-efficient hybrid vehicles.

  • Grandfathering Existing Vehicles: All vehicles already in Haiti at the time of the policy's enactment are exempt from these new taxes and can operate for their natural lifespan.

• Develop EV Infrastructure:

  • Public-Private Partnerships (PPPs): Issue tenders for private companies to build a network of public EV charging stations, starting with key corridors in Port-au-Prince, Cap-Haïtien, and other major urban centers.

  • Public Sector Leadership: Mandate that all new government vehicle procurements, where feasible, must be electric. This creates an initial market and showcases the technology.

1.2. For Goal 3 (Solar & Wind for Public Infrastructure):

• Solarize Public Buildings:

  • Launch "Project Limyè Piblik" (Public Light Project) to install solar panels and battery storage on all government buildings, schools, hospitals, and police stations. This will be funded through a mix of government budget, international climate finance, and PPPs.

  • Respect for Contracts: For public buildings under service contracts with private energy providers, the government will not terminate contracts prematurely. Instead, it will initiate discussions to integrate solar solutions, offering the private partner a role in the new system as an operator or maintenance provider.

• Convert Street Lighting:

  • Initiate a national program to replace all street lighting with solar-powered LED lights. This project is self-contained and does not interfere with existing grid power contracts.

1.3. For Goal 4 (Hydroelectric Development):

• Feasibility and Environmental Impact Studies:

  • Commission comprehensive studies to identify the top 3-5 potential sites for new hydroelectric power plants, with a focus on environmental sustainability and social impact (including community relocation and compensation plans).

  • Engage with international development banks and green investment funds to secure grants and low-interest loans for these studies and subsequent construction.

Phase 2: Acceleration & Regulation (Years 5-10)

This phase builds on the foundation, introducing stronger regulations as the market and infrastructure mature.

2.1. For Goal 1 & 2 (Transitioning to Electric Vehicles):

• Tighten Import Bans: Enact a full ban on the import of all ICE vehicles over 5 years old.

• Expand Charging Infrastructure: Use revenue from the new import taxes to fund the expansion of the charging network into secondary cities and along all major national highways.

• Establish Battery Recycling Program: Develop a regulated, environmentally sound system for the recycling and disposal of EV batteries, creating new green jobs.

2.2. For Goal 3 (Solar & Wind for Public Infrastructure):

• Net Metering Policy: Implement a national net metering policy, allowing homeowners and businesses with solar panels to sell excess electricity back to the grid. This creates a financial incentive for private investment in rooftop solar.

• Micro-Grid Development: Encourage the development of community-based solar and wind micro-grids in rural areas not yet served by the national grid, promoting energy democracy and local resilience.

2.3. For Goal 4 (Hydroelectric Development):

• Begin Construction: Break ground on the first major hydroelectric project identified in Phase 1, ensuring all environmental and social safeguards are in place.

• Grid Modernization: Simultaneously invest in upgrading and modernizing the national electrical grid (EDH) to handle the new, decentralized renewable sources and the large-scale input from hydro power.

Phase 3: Consolidation & Full Transition (Years 10-15)

This phase aims to lock in the gains and complete the transition.

3.1. For Goal 1 & 2 (Transitioning to Electric Vehicles):

• Set an End Date: Announce that the sale of new fossil-fuel cars will be prohibited effective in Year 15, providing a clear, long-term signal to the market.

• Support for Legacy Fleet: Develop incentive programs for the voluntary scrapping of old ICE vehicles and their replacement with used or new EVs.

3.2. For Goals 3 & 4 (A Renewable Grid):

• Integrated National Grid: By this phase, the national grid should be powered predominantly by a mix of hydro, solar, and wind, with hydro providing the baseload power for new industrial zones.

• Industrial Power Allocation: Actively market Haiti's new, stable, and low-cost renewable energy to attract and power energy-intensive industries, such as manufacturing and agro-processing, fulfilling the promise of industrialization.

Governance and Oversight

A new National Energy Transition Authority (NETA) will be established to oversee this entire process. NETA will be composed of technical experts, representatives from relevant ministries, and private sector advisors. Its mandate will be to ensure transparency, meet benchmarks, manage funds, and report annually to the government and the public on the policy's progress.

Conclusion

This policy is not merely an environmental directive; it is a national development strategy. It will create thousands of jobs in installation, maintenance, and manufacturing. It will clean our air, reduce our national debt, and provide reliable power for our homes, businesses, and industries. By taking a phased, pragmatic, and incentive-based approach, we will build a brighter, more powerful, and self-reliant Haiti for generations to come.