Maine’s drive towards a greener future faces significant hurdles as the state seeks to increase the number of electric vehicles on its roads. With an ambitious target of 150,000 light-duty electric vehicles by the next decade, the state’s key incentive program ran dry last year. Yet, legislative efforts are underway to bridge the funding gap.
A proposed bill, LD 585, introduced to the Legislature’s Energy, Utilities and Technology, aims to modify the Efficiency Maine Trust Act. This change would permit greater flexibility in utilizing funds, which were previously restricted to subsidizing heat pumps, for electric vehicle incentives instead.
Senator Henry Ingwersen, the bill’s sponsor, highlighted that the amendment could lower electricity costs for all users. By spreading out the electricity demand through increased electric vehicle adoption, utility rates could potentially decrease, benefitting all ratepayers. This legislative move comes as the demand for electric vehicles exceeded expectations, depleting the $13.5 million initially designated for the EV rebate program in 2019.
The Efficiency Maine program previously offered rebates of up to $2,000 for new electric or plug-in hybrid vehicles, with a significantly higher incentive of $7,500 for low-income consumers. However, rising demand led to an unexpected depletion of funds, resulting in the suspension of rebates for the general public last November. Rebates are currently only available to low-income individuals.
Michael Stoddard, Executive Director of Efficiency Maine, noted the unexpected surge in electric vehicle interest, which accelerated in the latter half of the previous year. He assured the legislative committee that if the bill passes, there is flexibility to allocate funds back to heat pumps should the need arise since demand for these remains high.
Governor Janet Mills has backed these developments as part of her broader energy goals, having already surpassed her 2019 target of installing 100,000 heat pumps by 2023. This success prompted a new objective of 175,000 additional installations by 2027. Meanwhile, the Governor’s Energy Office and Public Advocate Heather Sanborn have supported LD 585 for fostering an affordable energy transition and reducing consumer costs.
Environmental groups have also endorsed the bill, citing its potential to promote the use of electric vehicles, which is a critical step in reducing carbon emissions. Transportation accounts for nearly half of Maine’s carbon footprint, making the transition to electric and hybrid vehicles a priority in the state’s climate action plan.
However, not all feedback from the public was positive, with at least one individual voicing opposition during the hearing.
Maine’s legislative proposal to amend the Efficiency Maine Trust Act marks a significant step towards supporting electric vehicle adoption. By reallocating funds and introducing flexibility in spending, the state aims to address both environmental and economic goals. As discussions continue, the outcome of LD 585 could shape the future of Maine’s energy landscape, offering potential benefits for consumers and the environment alike.
