07-03-2025
Effort to replenish Maine's depleted EV incentive program could also reduce electricity costs
An electric vehicle charging station in Damariscotta, Maine. (Evan Houk/Maine Morning Star)
Despite wanting 150,000 light-duty electric vehicles on Maine roads by the start of the next decade, the state ran out of funding for a key incentive program last year. However, a bill introduced Thursday could help fill that gap.
The Legislature's Energy, Utilities and Technology held a public hearing for LD 585, which would amend language in the Efficiency Maine Trust Act to allow more flexibility in using certain program funds that are currently only used for subsidizing heat pumps. The bill would remove those limitations so certain revenue, known as forward capacity market funds, could be used for electric vehicles as well.
This change, as well as other language updates proposed in the bill, could, in turn, reduce electricity costs for ratepayers, said Sen. Henry Ingwersen (D-York), the bill sponsor. The additional load from electric vehicles dilutes the rates utility companies must charge to maintain and operate the grid, which helps reduce costs for all ratepayers, Ingwersen explained.
While Efficiency Maine has a variety of funding mechanisms for heat pump incentives, there aren't other revenue streams for the now-exhausted electric vehicle rebate program, said Executive Director Michael Stoddard.
In mid-November, Efficiency Maine had to stop issuing EV rebates — except for those designated for low-income customers — because it exhausted the $13.5 million provided for the program when it launched in 2019.
Efficiency Maine's EV rebate program offered up to $2,000 for the purchase of a new battery electric vehicle or plug-in hybrid to Mainers of any income. The rebate amount increased to $7,500 for low-income consumers and included an option to get some money back for purchasing a used hybrid or electric vehicle.
Efficiency Maine originally forecasted its funding for EV rebates would last through this coming June, but Stoddard previously told Maine Morning Star that demand accelerated more than expected in the second half of last year.
Stoddard shared this unexpected ramp up with the committee Thursday when they raised questions about future demand for electric vehicles. Although there was high demand last year, Stoddard reminded the committee that the language in the bill would still allow the trust to use the money on heat pumps if EV demand were to fall off.
'It gives us some discretion to move around and adjust to the market,' Stoddard said, noting that demand for heat pumps remains high.
Gov. Janet Mills has encouraged the transition to heat pumps, setting a goal in 2019 of installing 100,000 by 2025. That goal was met in 2023, so the governor set a new target of another 175,000 heat pump installations by 2027.
The Governor's Energy Office testified in support of the bill, seeing it as a tool to aid in an affordable energy transition. Public Advocate Heather Sanborn also supported the bill for its potential to reduce costs for customers.
'[Efficiency Maine] has a track record of demonstrably driving down rates for all ratepayers,' Sanborn said. 'We think their efforts should continue.'
Environmental advocates also spoke in favor of the bill for its potential to encourage more Mainers to make the switch to EVs. Given that transportation is responsible for nearly half of the state's carbon emissions, the state's climate action plan calls for the adoption of electric and hybrid vehicles to combat climate change.
One member of the public spoke in opposition to the bill.
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