Sen. Ingwersen introduces bill to incentivize electric vehicles and heat pumps

AUGUSTA – On March 6, 2025, Sen. Henry Ingwersen, D-Arundel, introduced a bill to incentive the purchase of electric vehicles and heat pumps in Maine. LD 585, “An Act to Use Certain Regional Transmission Organization Payments for Beneficial Electrification to Reduce Electricity Rates,” was the subject of a public hearing before the Legislature’s Committee on Energy, Utilities and Technology.

“Since I successfully introduced legislation to incentivize electric vehicles purchases in 2019, the demand has increased,” said Sen. Ingwersen. “This bill will meet the demand to support rebates especially for low-to-moderate income buyers, and supports the individual consumer’s decision to make the switch to EVs when they’re ready. EVs and heat pumps can reduce electricity rates and are less costly to operate and maintain than gas-powered products. These incentives are crucial to meet the needs of those that face the most significant barriers with the purchasing of an EV or heat pump.”

“These two forms of beneficial electrification heat pumps and electric vehicles are integral to Maine’s beneficial electrification policy as a long-term strategy to put downward pressure on electricity rates in Maine” said Michael Stoddard, Executive Director of Efficiency Maine Trust. “This legislation would expand the allowable uses of revenues from the Forward Capacity Market to include the promotion of electric vehicles while also extending financial incentives through the years ahead so that we can continue to foster market transformation for heat pumps and EVs.”

LD 585 would provide financial incentives to Mainers who use fossil fueled equipment to voluntarily adopt efficient electric alternatives. The bill would expand the program funding that includes heat pumps to now include electric vehicles. In November 2024, Efficiency Maine Trust fully exhausted funding available for all EV rebates except for low-income customers.

This legislation also works to address Maine’s climate goals. The Maine Climate Action Plan states that “accelerating the sales of new and used electric vehicles including plug-in hybrid vehicles is the most effective way to cut greenhouse gas emission and improve air quality and public health.” The transportation sector accounts for almost half of the carbon emissions in Maine. This bill would support Mainers facing higher upfront costs on electric vehicles, while also acting as a long-term and sustainable solution for our climate.

LD 585 faces a work session and further action in committee.