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Dealers report steady EV registrations at 12% in 2024 but flag compliance, credit and supply concerns tied to ACC II
Summary
A representative of Vermont auto dealers told the House Transportation Committee that electric vehicles made up roughly 12% of Vermont vehicle registrations in 2024, that state "Drive Electric" rebates ran out at the end of September, and that dealers face uncertainty from the Advanced Clean Cars II rule and manufacturers' compliance strategies.
Matt Coda, a consultant with Meadow Hill Consulting representing the Vermont Vehicle and Automotive Distributors Association, told the House Transportation Committee the association’s data show roughly 113,462 new and used vehicles were registered in Vermont in 2024 and that about 12% of those registrations were battery electric or plug‑in electric vehicles.
"Incentives work," Coda said, but he added the end of state rebate funding at the end of September did not produce a sharp drop in EV registrations. Dealers saw sales rise in October and hold roughly steady through the remainder of the year, he said, while acknowledging multiple factors — manufacturer lease deals, federal tax credits and model‑year timing — also affect sales.
Coda described the Advanced Clean Cars II (ACC II) and Advanced Clean Truck rules that Vermont adopted following California’s model. He said ACC II, adopted by the Vermont Agency of Natural Resources on the recommendation of the Vermont Climate Council, requires manufacturers to deliver increasing shares of battery electric vehicles to Vermont — a 35% target beginning with model year 2026 that scales toward 100% in 2035. "It's not a mandate on consumers to buy these cars," Coda said. "It's a mandate on manufacturers to deliver to Vermont 35% battery electric vehicles starting model year 2026 scaling up to a 100% in 2035."
Coda explained three compliance paths for manufacturers: deliver the required share; lower the allocation (deliver fewer vehicles overall) so the percentage meets the target; or purchase compliance credits from manufacturers that overproduce electric vehicles. He said firms such as Tesla have generated significant revenue from selling credits to other manufacturers.
Committee members asked how enforcement and compliance would proceed; Coda pointed to the California Air Resources Board and the Vermont Agency of Natural Resources as the regulatory authorities that maintain compliance data and credit systems. He also noted practical market responses by some commercial truck operators, who have considered or taken steps such as changing registration domicile to states without the truck rule to avoid purchase requirements for specialty work trucks.
Coda emphasized uncertainty in the regulatory environment — including potential federal actions affecting California’s permission under the Clean Air Act — and said the coming years will be a challenging compliance period for manufacturers and dealers. Committee members requested the presentation slides and additional data for committee records; the panel offered to provide the large file to committee staff.
