A surge of electric vehicle purchases has nearly emptied a state fund set aside to encourage drivers to buy zero-emission cars and trucks.
Efficiency Maine Trust will suspend its rebate program for most EV purchases on Nov. 16. Qualified low-income buyers can still access state incentives.
Under the program drivers could get up to $2,000 back for qualified battery-electric vehicles and $1,000 for hybrid models.
Efficiency Maine Executive Director Michael Stoddard said battery-electric rebates were steady for years, with 70 to 90 a month.
Starting in August, however, rebates more than doubled. In October, the quasi-state agency processed more than 190 rebates, according to Stoddard.
"We have two or three years worth of data showing that it was just bumping along at a kind of a steady level. And so this jump of the last few months is a bit of a surprise and pretty significant," he said.
The sudden rebate increase ate through $1.4 million Efficiency Maine had remaining to finance the program. The fund was left over from an original $3.5 million appropriation the legislature made in 2022 for rebates.
Stoddard said there was no expectation about how long the funding would last because Efficiency Maine had such little experience with what market demand would be.
As early as last spring, the agency estimated the remaining money would last deep into its fiscal year, which runs from July to June.
But "the rates climbed precipitously, bringing us to where we are now," Stoddard said.
The federal government still offers tax credits for new and used electric vehicle purchases.
Greenhouse gas pollution from the transportation sector contributes almost half of Maine's climate-warming emissions. The state's climate action plan envisioned cutting tailpipe pollution by widespread EV adoption, aiming to put 219,000 vehicles on the road by 2030.
So far, there are about 8,650 battery electric vehicles in Maine according to state data.
The state government is fighting a lawsuit from environmental groups that allege it has failed to enact policies to encourage more EV adoption and meet a legal obligation to cut greenhouse gases 45% by 2030 and 80% by 2050.
The rebate program could be refunded by the Legislature, or revived with federal grants, Stoddard said.
Maine Public’s Climate Desk is made possible by Androscoggin bank, with additional support from Evergreen Home Performance, Bigelow Laboratory, & Lee Auto Malls.
