Oregonians looking to purchase an electric vehicle this year should do so soon, before the state suspends its popular EV rebate program due to lack of funds.
The Oregon Department of Environmental Quality will temporarily suspend the starting May 1 until funds for the program are replenished next year. This is the first time DEQ has paused its rebate program, which began in late 2018. The program offers based on a person鈥檚 income, and it was designed to encourage the purchase or lease of zero-emissions vehicles as a way to reduce greenhouse gas emissions statewide.
The program receives 45% or at least $12 million a year from the state鈥檚 鈥� a tax paid by car dealerships. DEQ projects it will receive about $14 million in 2023. In total, the program鈥檚 2023 budget is $17.5 million, with $15.5 million available for rebates.
DEQ鈥檚 senior air quality advisor Rachel Sakata said since the program began, the agency has issued . But, simply put, the program is getting too popular as more people turn to EVs.
鈥淯nfortunately, we鈥檝e become a victim of our own success and we鈥檙e running out of money,鈥� Sakata said. 鈥淭hat means that any electric vehicles that are purchased or leased prior to April 30 can still receive a rebate in 2023, but any purchases or leases after May 1 will not be eligible.鈥�
Residents who do purchase an EV on or before April 30, still have six months to apply for the rebate. However, if funding runs out, residents will be put on a waiting list and receive rebates once the program is replenished. DEQ estimates the suspension will be lifted in March 2024, or earlier if the program receives additional funding for 2023.
Oregon鈥檚 transportation sector accounts for of the state鈥檚 total greenhouse gas emissions, the largest single source in the state. DEQ鈥檚 temporary suspension comes as the state has been moving away from gas-powered vehicles. Earlier this year, Oregon aligned with California and Washington by adopting rules that will . The state is ranked, behind California, for the share of new vehicles sold that are electric. Oregon is also investing along major roadways and in rural areas.
鈥淲hat we鈥檙e really seeing is that EV adoption is increasing,鈥� Sakata said of the DEQ program running out of funds. 鈥淚t鈥檚 great to see such an explosive growth in the program.鈥�
Despite the program being on hold, Sakata said Oregon residents who want to purchase an electric vehicle after May 1 can still get help through the federal government. Qualifying households can apply for up to $7,500 in federal tax credits, depending on the vehicle purchased.
Forth, a nonprofit dedicated to increasing equitable access to electric transportation, criticized the pause. Executive director Jeff Allen said the suspension could have not come at a worse time, as data show more Oregonians are making the switch to electric vehicles. He said the suspension likely will who would benefit the most by purchasing an EV.
鈥淚t鈥檚 absolutely terrible that this rebate program is being suspended,鈥� Allen said, adding he expects 鈥渁n enormous chilling effect鈥� on EV adoption as a result.
Forth has been a leader in helping residents switch from gas-powered vehicles to electric by providing outreach and education on how the vehicles work and what incentives exist. He said his group was part of a coalition that designed the rebate program in 2017. Since then, he said, the program has been a model for other states.
鈥淚 think really the problem is just that people underestimated how popular this program was going to be, which is a great problem to have,鈥� he said.
According to Oregon DEQ鈥檚 clean vehicle rebate coordinator, Erica Timm, the projected costs to cover the program will only become more expensive as Oregon gets closer to 2035.
鈥淭he number for next year for example, is an estimated $33 million to cover the costs,鈥� she said when asked about projections. 鈥淏ut if we were to look out to, say, 2030, we were looking at the projected cost could be over $91 million a year.鈥�
For 2023, the state would need around $30 million this year to fulfill all the projected demand for rebates.
That鈥檚 the exact amount legislators are asking for in, which would declare an emergency and allocate money from the state鈥檚 general fund to DEQ on July 1.
Rep. Susan McClain, D-Hillsboro, is a chief sponsor of the bill. She said suspending the rebate when EV prices are rising will only increase barriers for Oregonians. She also called the pause 鈥渁 huge step backward鈥� for Oregon鈥檚 climate goals.
Allen agrees.
鈥淲e need the governor and Legislature to act quickly to fund this program and either prevent this suspension or end the suspension as quickly as possible,鈥� he said.
If the proposed bill goes through, Allen said, it provides an opportunity for Oregon to think more thoroughly about what the rebate program needs to be successful and avoid future suspensions.
Copyright 2023 Oregon Public Broadcasting. To see more, visit .
