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Committee keeps EV provisions in T bill; debates mileage-based fee, ACCD appropriation and Drive Electric funding
Summary
The committee retained Section 13 (EV infrastructure fee and mileage-based user fee intent), debated a one-time appropriation to the Agency of Commerce and Community Development for EV charging, and agreed to pursue adding language to fund Drive Electric Vermont’s electrify-your-fleet work.
The House Transportation Committee on March 14 approved keeping Section 13 in the Transportation bill, which adds language shifting an earlier-proposed annual registration fee toward an "electric vehicle infrastructure" fee and preserves legislative intent that the Agency of Transportation (AOT) propose rate-setting authority later.
Section 13 changes in the draft add "battery electric vehicle" in definitions, rename the fee to an "electric vehicle infrastructure fee" rather than a registration fee, and cross-reference established definitions for BEV, PEV and PHEV. The committee left the final per-mile rate unspecified and directed that AOT develop rate proposals and fiscal projections for future committee review.
Members argued for keeping funding to support build-out of public and residential charging. Representative Burke and others said the one-time appropriation to the Agency of Commerce and Community Development (ACCD) should remain to honor earlier commitments to municipalities and to continue the successful program that places Level 2 chargers and supports multiunit dwellings and disadvantaged areas.
Committee members discussed possible transfer of $1.4 million from a key fund to ACCD versus redirecting that money to mileage-based user fee (MBUF) research and programming. Speakers noted an earlier one-time appropriation of $1,700,000 had started the program; committee members also referenced a $3,000,000 request to program MBUF and estimates that total needed funding for MBUF work could range from $4 million to $6 million. Several members opposed moving the ACCD funds, citing equity, geographic distribution, and the program’s capacity to spend funds in targeted areas.
The committee also reviewed a proposal to use $325,000 of unspent FY24 money from the "Electrify Your Fleet" program to partner with Drive Electric Vermont to expand electrification technical assistance, stakeholder coordination and municipal fleet electrification work. Members expressed interest in pursuing that language and asked staff to schedule follow-up testimony from ACCD and Drive Electric Vermont next week to refine draft bill language.
On procedure, Section 13 was kept in the bill by a show of hands and head nods; the chair counted at least six affirmative responses and directed staff to reflect the retained language in a new draft.
Committee members discussed several policy options that would require further testimony, including whether to allow Level 1 chargers in the grant program, whether to open eligibility to public-attraction sites, and how to tailor geographic distribution rules. Agency representatives recommended continued flexibility and suggested regional development corporations could assist applicants in underserved areas.
Next steps: staff will prepare an updated draft reflecting retained Section 13 language, schedule testimony from ACCD and Drive Electric Vermont on the electrify-your-fleet proposal, and provide additional fiscal and application-status information on existing ACCD grants before further votes.
