Maine Senate passes Sen. Henry Ingwersen bill to incentivize heat pumps and electric vehicles, support climate goals

AUGUSTA — Yesterday, the Maine Senate enacted LD 585, “An Act to Use Certain Regional Transmission Organization Payments for Beneficial Electrification to Reduce Electricity Rates,” a bill sponsored by Sen. Henry Ingwersen, D-Arundel, that would incentivize the use of heat pumps and electric vehicles, which advance clean energy goals and lower overall electric supply, transmission and distribution costs.

“The passage of this bill brings us even closer to creating better policies and procedures geared to drive the State’s transition toward clean, sustainable energy resources and address our climate crisis,” said Sen. Ingwersen. “Transportation is one of the largest contributions to greenhouse gas emissions in our state. Encouraging the use of electric vehicles in a way that works for Maine people and lowers their costs will reduce our carbon footprint and help build a more sustainable future.”

Under current law, forward capacity market payments (funding the State receives from regional electricity markets) are only allowed to be used for heat pumps until 2025. If enacted, LD 585 would remove the 2025 deadline and expand the funding to support electric vehicles as well. This bill is a strong step toward achieving the State’s goal of net-zero greenhouse gas emission by 2045 and achieving 150,000 light-duty electric and plug in hybrid vehicles on the road in Maine by 2030.

LD 585 is part of the Legislature’s ongoing effort to promote clean and energy-efficient initiatives and technologies, like heat pumps and EVs, in a way that works economically and logistically for Maine people. Technologies like heat pumps and EVs use less energy and reduce overall demand on the electric grid.

LD 585 now goes to the Governor’s desk, where she has 10 days to sign it, allow it to become law without her signature or veto it.