Vermont PUC report on electric vehicles

Vermont utility regulators have recommended steps Vermont could take to accelerate the use of electric vehicles (EVs) in the state, including creating state incentives for EV purchases as well as encouraging electric utilities to adopt new rate structures.

Like most other states, Vermont's transportation sector contributes more greenhouse gas emissions than any other sector of the state's economy. Due in large part to emissions from cars and trucks powered by fossil fuels, the transportation sector is responsible for about 47% of Vermont's total greenhouse gas emissions; by contrast, Vermont's electricity generating sector is relatively small but nearly entirely renewable, and has the lowest carbon dioxide emissions of any state according to federal data. Other New England states are similar -- for example, Maine's transportation sector contributed 53% of the state's total greenhouse gas emissions in 2017, while electric power generation in Maine accounted for just 9 percent of the state’s total carbon emissions.

Indeed, the New England electricity grid has experienced significant decarbonized in recent decades, and renewable energy can now be consumed in the transportation sector through the use of EVs. In 2016, Vermont adopted a Comprehensive Energy Plan aiming to power 10% of transportation with renewable energy by 2025, and 80% by 2050, while reducing the sector's emissions by 30% by 2025. Vermont estimates that reaching these goals would require adding about 50,000 to 60,000 EVs to replace vehicles with internal combustion engines by 2025, for a compound annual growth rate of about 54%.

On June 27, 2019, the Vermont Public Utilities Commission released its report to various state legislative committees, "Promoting the Ownership and Use of Electric Vehicles in the State of Vermont." The report recommends that Vermont create incentives for EV purchases or leases, whether in the form of time-of-sale rebates or tax credits. It also recommends that Vermont buy EVs for the state vehicle fleet, and encourage the development of EV charging infrastructure through zoning or building code modifications.

The report also suggests that the Commission encourage electric utilities to take additional actions to promote EV adoption, such as funding EV purchase incentives through Vermont's Renewable Energy Standard program, or developing time-of-use retail rates to encourage car charging at off-peak times. It also noted that utility rate structures which impose demand charges on most commercial accounts but not on residential accounts make public direct-current fast-charging more expensive than at-home charging.

The report also notes that increased education and outreach efforts -- by utilities as well as by car dealers and other third parties -- could encourage consumer adoption of EVs.