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House passes update to EV rebate program after heated debate over removing per‑vehicle caps
Summary
The House voted to pass HB 3 48, removing fixed MSRP and per‑vehicle rebate caps for Delaware’s clean vehicle rebate program and delegating flexibility to the administering agency. Supporters cited program targeting and a $4,000,000 annual allocation; critics warned removing caps could allow large rebates and hurt equity.
The Delaware House on May 12 passed House Bill 3 48, an update to the state’s clean vehicle rebate program that removes fixed MSRP and per‑vehicle rebate caps and allows the administering agency to set eligibility and award amounts.
"This legislation removes the fixed MSRP and rebate caps to allow flexibility based on market conditions," sponsor Representative Phillips said, framing the change as necessary to keep the program responsive to vehicle pricing, federal policy and market shifts. Phillips told colleagues the program can use available funding and income‑based eligibility to target incentives and avoid repeating year‑to‑year legislative fixes.
Opponents pressed the sponsor on potential consequences of removing per‑vehicle caps. Representative Spiegelman asked whether removing caps effectively "hands the authority over to a governmental body to essentially say, okay... we're gonna give you $20,000 off, $30,000 off, $40,000 off" a vehicle, and warned municipalities or better‑funded buyers could exhaust limited funds. Spiegelman said, "There's no way to stop a $20, 30, 40,000 rebate." The sponsor and supporters responded that the program historically has not exhausted its $4,000,000 annual allocation and that awards are administered with income‑based priorities.
Members also raised equity questions and requested data on who has benefitted from the program. Representative Smith asked for median household income data for participants; the sponsor said program records exist and the funding source is RGGI (Regional Greenhouse Gas Initiative). The sponsor said the program is intended to help lower‑income, self‑employed residents who use disproportionate shares of gas in their work.
On roll call, the clerk reported 26 yes, 13 no, 2 absent; the Chair declared HB 3 48 passed the House. The bill was presented as a departmental‑administered program change rather than a new appropriation; the sponsor said the General Assembly could revisit the statute if the administration applied funds in ways the legislature found inequitable.
Next steps were not recorded in the transcript; the bill passed third reading in the House and will proceed consistent with the legislative process.
