Search Federal and State Laws and Incentives

Hybrid Electric Vehicle (HEV) and Plug-In Electric Vehicle (PEV) Acquisition Requirements

The Vermont Department of Buildings and General Services (Department) must, to the extent possible, purchase or lease HEVs or PEVs for state use. At least 50% of the vehicles purchased or leased annually must be HEVs or PEVs. Beginning July 1, 2021, at least 75% of the vehicles purchased or leased annually must be HEVs or PEVs. The Department must acquire the lowest-cost make and model that meets the State’s needs. (Reference Vermont Statutes Title 29, Chapter 49, Section 903)

Zero Emission Vehicle (ZEV) Deployment Support

Vermont joined California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, and Rhode Island in signing a memorandum of understanding (MOU) to support the deployment of ZEVs through involvement in a ZEV Program Implementation Task Force (Task Force). In May 2014, the Task Force published a ZEV Action Plan (Plan) identifying 11 priority actions to accomplish the goals of the MOU, including deploying at least 3.3 million ZEVs and adequate fueling infrastructure within the signatory states by 2025. The Plan also includes a research agenda to inform future actions. On an annual basis, each state must report on the number of registered ZEVs, the number of public electric vehicle supply equipment (EVSE) and hydrogen fueling stations, and available information regarding workplace fueling for ZEVs.

In June 2018, the Task Force published a new ZEV Action Plan for 2018-2021. Building on the 2014 Action Plan, the 2018 Action Plan makes recommendations for states and other key partners in five priority areas:

• Raising consumer awareness and interest in electric vehicle technology;
• Building out a reliable and convenient residential, workplace and public charging/fueling infrastructure network;
• Continuing and improving access to consumer purchase and non-financial incentives;
• Expanding public and private sector fleet adoption; and
• Supporting dealership efforts to increase ZEV sales.

For more information, see the Multi-State ZEV Task Force website.

Plug-In Electric Vehicle Credit - Vermont Electric Co-op (VEC)

VEC offers a $250 bill credit to members who purchase a new or used plug-in hybrid electric vehicle (PHEV) and a $500 bill credit to members who purchase a new or used all-electric vehicle (EV). Members who lease a PHEV are eligible for an annual bill credit of $50 for each year of the lease, and members who lease an EV are eligible for an annual bill credit of $100 for each year of the lease. For more information, including how to apply, see the VEC Energy Transformation Program website.

Electric Vehicle Supply Equipment (EVSE) Incentive - Green Mountain Power (GMP)

GMP residential customers are eligible for a free Level 2 EVSE when they purchase a new all-electric vehicle. For more information about these incentives, see GMP's In-Home Level 2 EV Charger website.

Heavy-Duty Vehicle Emissions Reduction Grants

Through the Vermont Diesel Emissions Reduction Grants Program, the Vermont Department of Environmental Conservation (DEC) provides funding to local, state and regional agencies or departments, businesses, institutions, and nonprofit organizations for projects focused on reducing emissions from diesel engines and vehicles. Qualifying heavy-duty vehicles include buses and Class 5-8 trucks. Projects eligible for funding are as follows:

• Verified emission control technologies;
• Verified idle reduction technologies;
• Verified aerodynamic technologies and low rolling resistance tires;
• Certified engine replacements;
• Alternative fuel conversions; and
• Certified vehicle or equipment replacements.

Electric Vehicle Supply Equipment (EVSE) Credits - Vermont Electric Co-op (VEC)

VEC offers a bill credit of $500 per connector, up to $2,000, to VEC member businesses and public entities that install Level 2 or DC fast EVSE between July 2, 2017 and December 31, 2019. To qualify, the EVSE must be available for public use. Bill credits are available for up to 30 connectors total.

VEC also offers residential customers a $250 bill credit for the purchase of a Level 2 EVSE. Members with eligible chargers may receive an additional $50 incentive for participating. For more information, including additional restrictions and how to apply, see the VEC Energy Transformation Program website.

Plug-In Electric Vehicle (PEV) Rebate - Green Mountain Power (GMP)

GMP provides rebates of $1,500 for the purchase of new all-electric vehicles, $1,000 for the purchase of new plug-in hybrid electric vehicles, and $750 for the purchase of used PEVs. Customers with qualifying low and moderate household incomes are eligible for an additional $1,000 rebate. Vehicles must have a manufacturer's suggested retail price that is less than or equal to $60,000. For more information, see the GMP EV Rebate website.

Alternative Fueling Infrastructure Incentive

The Vermont State Infrastructure Bank (SIB) offers loan assistance to municipalities, regional development corporations, political subdivisions of the state, and private companies working for the state to finance public electric vehicle charging and natural gas fueling stations. 1% fixed loans are available to municipalities and 3% fixed loans are available to private sector borrowers. Other terms and conditions may apply. See the Vermont Economic Development Authority's SIB page for more information, including how to apply.

Plug-In Electric Vehicle (PEV) Analysis

The Vermont Public Utility Commission (Commission) completed a report that evaluated PEVs and PEV charging in the state. The Commission was to provide public notice, opportunity for submission of written comments, and one or more workshops on PEVs before the evaluation is conducted. In its report, the Commission was required to include analysis and recommendations on the following topics regarding electric vehicle supply equipment (EVSE) owned by electric utilities:

• Removal of barriers to EVSE installation, including strategies to reduce operating costs for EVSE users;
• Strategies to manage the impact of PEV charging on the electric transmission and distribution system;
• Strategies to facilitate the services provided by PEVs to the electric transmission and distribution system;
• Benefits and costs to the electric system of PEV charging, electric utility planning for PEV charging, and rate design for PEV charging; and
• The role of electric utilities with respect to the deployment and operation of EVSE.

• How and when these EVSE stations will obtain electricity;
• Safety standards for EVSE;
• The role of the Commission and other relevant state agencies in managing these EVSE;
• Regulations, if any, on pricing structures for EVSE, including transparency to the consumer of any rates or prices; and
• Billing and complaint procedures for EVSE.

• Options for PEV drivers to contribute toward the cost of maintaining the State's transportation infrastructure;
• The accuracy of electric metering and submetering technology for PEV charging;
• Strategies to encourage PEV adoption and achieve the State's Comprehensive Energy Plan and greenhouse gas reduction goals; and
• Any other topics that the Commission believes are relevant to fair, cost-effective, and accessible PEV charging.

Electric Vehicle Supply Equipment (EVSE) Grants

The Vermont Department of Housing and Community Development (DHCD) provides funding to governments, businesses, non-profit organizations, homeowner associations, electric utilities, and EVSE providers for the cost and installation of eligible EVSE. Applicants will be required to match 20% of all awarded funds. Eligible projects must include a minimum of 11 EVSE locations throughout the state. This grant program is funded by Vermont's portion of the Volkswagen Environmental Mitigation Trust. The program is not currently accepting applications (verified June 2020). For more information, see the DHCD EVSE Grant Program website.

Plug-In Electric Vehicle (PEV) Incentives - Burlington Electric Department (BED)

BED provides low- or no-interest loans for the purchase of a new PEV. Eligible customers can also apply for a rebate of up to $2,400 towards the purchase of a new PEV or $800 for the purchase of a used PEV. For more information, see the BED Electric Vehicles website.

Plug-In Electric Vehicle (PEV) Charging Rate Reduction and EVSE Rebate - BED

Burlington Electric Department (BED) offers a per kilowatt-hour discount for residential customers to charge PEVs during off-peak times. To qualify, customers must install a WiFi enabled electric vehicle supply equipment (EVSE).

BED also offers a rebate of $400 for the purchase and installation of a qualifying Wifi enabled EVSE for customers that have enrolled in BED’s Residential EV Rate. Eligible applicants must have purchased EVSE within 60 days of the acquisition of the EV.

For more information, see the BED EV Rate website.

Plug-In Electric Vehicle (PEV) Incentive

The Vermont Agency of Transportation provides financial incentives to low- and moderate-income residents for the purchase or lease of a new PEV on a first-come, first-served basis. Incentives are available according to the following schedule:

Lower-income households are defined as those eligible for weatherization services through the U.S. Department of Energy. For more information, including application and eligibility requirements, visit the Drive Electric Vermont website.

(Reference House Bill 529, 2019)

Fuel-Efficient Vehicle and Emission Reduction Incentives

The Vermont Agency of Transportation (VTrans) administers the High Fuel Efficiency Used-Vehicle Program, MileageSmart, which provides incentives of up to $5,000 to replace eligible vehicles with a used vehicle that has a U.S. Environmental Protection Agency (EPA) combined city/highway fuel economy of at least 40 miles per gallon (mpg).

VTrans also offers vouchers of up to $2,500 for the repair of vehicles that failed the on-board diagnostic (OBD) systems inspection. Eligible vehicles for replacement include those that have failed the OBD systems inspection or those that are more than 15 years old and have an EPA combined city/highway fuel economy of less than 25 mpg. Eligible vehicles for a repair voucher are those that have failed the OBD systems inspection, require repairs that are not under warranty, and will be able to pass the inspection once the repairs are made. The emissions repair program must be operational by July 1, 2021.

(Reference House Bill 529, 2019 and House Bill 529, 2020)

Public Utility Definition

An entity that supplies electricity to the public exclusively to charge plug-in electric vehicles is not defined as a public utility and may charge for this electricity by the kilowatt-hour. (Reference Vermont Statutes Title 30, Chapter 5, Section 203)

Electric Vehicle Supply Equipment (EVSE) Fee Authorization

Any Vermont agency or department that owns or controls EVSE may establish and set user fees. The agency or department may establish fees that are less than or equal to the cost of charging or the retail rate charged for the use of EVSE available to the public. Fees collected must be deposited into the same fund or account from which the EVSE expenses originated. This authorization expires on July 1, 2022. (Reference Vermont Statutes Title 32, Chapter 7, Section 604)

Electric Vehicle Supply Equipment (EVSE) Code Reporting

On or before December 1, 2019, the Vermont Agency of Agriculture, Food and Markets (Agency) must submit a report to the legislature that provides an update on the National Institute of Standards and Technology’s (NIST) progress toward adopting a code on EVSE and makes a recommendation for an annual licensing fee for EVSE available to the public. If NIST has not adopted a code on EVSE by December 1, 2020, the Agency must submit an additional report on or before that date that provides an update on NIST’s progress toward adopting a code. (Reference Vermont Statutes Title 9, Chapter 73, Section 2730)

Fuel-Efficient Vehicle Incentive Analysis

The Vermont Agency of Transportation (VTrans) must complete a study and submit a to the legislature determining whether to implement a rebate program for individuals to purchase or lease fuel-efficient vehicles that is funded by fees collected from individuals that purchase or lease inefficient vehicles. The report must also assess how this incentive program could function with other Vermont incentive programs to reach the plug-in electric vehicle goal in the Vermont Comprehensive Energy Plan. VTrans published a report on October 15, 2019. (Reference House Bill 529, 2019)

Plug-in Electric Vehicle (PEV) Rebates – Vermont Public Power Supply Authority (VPPSA)

VPPSA member customers are eligible for rebates of up to $1,000 on the purchase of a new BEV, and up to $500 on the purchase of a new plug-in hybrid electric vehicle (PHEV). VPPSA also offers rebates of $500 for the purchase of a pre-owned BEV and $250 for the purchase of a pre-owned PHEV. Low-income customers may receive an additional $400 rebate for a new BEV or PHEV. For more information visit the VPPSA Electric Vehicle Rebate website.

Plug-in Electric Vehicle (PEV) Rebate – Stowe Electric

Stowe Electric offers customers rebates for the purchase or lease of PEVs. New plug-in hybrid electric vehicles (PHEVs) are eligible for a $750 rebate, new all-electric vehicles (EVs) are eligible for a $1,000 rebate, and income-qualifying customers are eligible for an additional $250 rebate for either vehicle. Stowe Electric also offers a $400 rebate for the purchase of used EVs and a $300 rebate for the purchase of used PHEVs. For more information, including how to apply, see the Stowe Electric Rebate Programs website.

Regional Transportation and Climate Initiative (TCI)

Connecticut, Delaware, District of Columbia (D.C.), Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia signed a Declaration of Intent to create the TCI, a regional initiative to improve transportation, develop a clean energy economy, and reduce carbon emissions and air pollutants from the transportation sector. The signatory states and D.C. agree to explore and develop policies and programs that result in greater energy efficiency of regional transportation systems and reduce emissions. Additionally, states support the deployment of clean vehicles and fueling infrastructure, such as electric vehicle supply equipment, to maximize the economic opportunities and emissions reductions. For more information, see the TCI website.

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

By January 2021, the Task Force will develop a multi-state action plan to support electrification of medium- and heavy-duty vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new medium- and heavy-duty vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of medium-duty and heavy-duty ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the Multi-State Medium- and Heavy-Duty Zero Emission Vehicle MOU.