House Transportation committee signals support to authorize remaining Electrify Your Fleet funds for Drive Electric Vermont

The House Transportation Committee on March 18 signaled support for language that would authorize remaining Electrify Your Fleet funds to be used to continue the state’s partnership with Drive Electric Vermont, a program that provides technical assistance, consumer education and stakeholder coordination for fleet electrification.

Committee members said the change would not move or reappropriate annual funding but would allow the existing appropriation for Electrify Your Fleet to be spent to support Drive Electric Vermont’s work. The authorization was discussed as part of draft 7.1 of the committee’s transportation bill; committee staff said the language would be placed in section 14 of that draft and carried forward to the T‑bill for further review in appropriations.

The measure traces back to Act 62 of 2023, which reappropriated $500,000 to start the Electrify Your Fleet program. Patrick Murphy of the Vermont Agency of Transportation, who presented the item to the committee, said the program originally offered a $2,500 per‑vehicle incentive that was intended to be paired with the federal Inflation Reduction Act tax credit of up to $7,500 for eligible entities, producing up to $10,000 off the purchase price. Murphy said uptake by eligible fleets slowed after initial interest because municipal and business purchasing decisions follow different timetables and approval layers than household buyers.

“If you remember, the incentive at that point was $3,000,” Murphy said, adding that the federal credit changed the market dynamics. Murphy told the committee the program launched in November 2023 and that about $100,000 has been spent on vehicle incentives so far; roughly $350,000 of the original appropriation remained and the committee was considering authorizing about $325,000 to support Drive Electric Vermont while honoring existing grant agreements.

Drive Electric Vermont’s managing consultant, Dave Roberts, described the group’s services and how the funds would be used. “We coordinate the Drive Electric Vermont program,” Roberts said. He told the committee Drive Electric Vermont provides stakeholder coordination, individualized consultations for businesses and fleets, and public resources including a website that the group reports receives about 75,000 visits a year. Roberts said much of the group’s work focuses on charging infrastructure planning, technical assistance and equity‑focused outreach to community organizations.

Some legislators pressed on how much of the remaining funds would be spent on direct vehicle incentives versus so‑called soft costs such as outreach and technical assistance. Representative White asked what percentage would go to hardware (vehicles and charging infrastructure) versus stakeholder coordination and consumer outreach. Murphy and Roberts said the authorization language was intentionally broad to allow the program to respond to market changes and to focus on preparing municipalities and businesses to electrify when their procurement timelines align with funding availability.

Committee members were also told that existing grant agreements would be honored if applications are still pending: Murphy said the proposed authorization “still allows for applications that might be trickling in this week or next, to be sort of fulfilled,” and that the change would not cut off obligations already under contract.

The committee’s chair instructed legislative counsel to draft section 14 of the transportation bill to include the authorization; members signaled approval by head nods and verbal agreement but did not record a roll‑call vote in the hearing. The language will be reviewed again in appropriations and on the floor as the bill advances.

Practical implications: supporters said the authorization shifts limited state funds toward preparation and technical assistance for fleets — steps they described as necessary to translate incentives into actual vehicle purchases over multi‑year municipal procurement cycles. Skeptics on the committee urged clarity on how much money would go to direct vehicle incentives versus coordination, and asked for a clear scope of work before the funds are spent.

The committee also discussed related items such as federal funding uncertainty for charging infrastructure and a separate state proposal reported earlier in the week to use surplus RGGI (Regional Greenhouse Gas Initiative) proceeds for additional EV incentives. Those items remain under consideration and were not resolved at the March 18 meeting.