Monday, May 10, 2021

Oregon House Votes to Boost Electric Vehicle Rebates, Deepen Utility Investment (Portland Business Journal, OR)

Oregon lawmakers took another step on Thursday toward doing something to increase electric vehicle adoption that has fallen short of goals. But how their efforts will shake out in the end remained fuzzy.

The latest action in the Legislature was in the House, which passed a bill that strengthens the state’s EV rebate program and the ability of investor-owned electric utilities to spend ratepayer money on charging infrastructure.

House Bill 2165 now moves to the Senate, which in March passed a bill with similar utility investment provisions.

Oregon fell 16,000 EVs short of a Gov. Kate Brown's goal to have 50,000 registered in the state by the end of 2020. Both bills are intended to take on the issue.

But there are key differences.

Senate Bill 314 doesn’t have the rebate provisions, and it would allow natural gas utilities to rate-base investments that support vehicles that run on renewable natural gas or hydrogen. Many climate activists object to that.

Sen. Lee Beyer, sponsor of the Senate bill, told a House committee looking at the bill this week that he hopes to see both bills adopted and their differing provisions reconciled.

The Senate passed its bill by a bipartisan 25-2 count in March.

No Republicans backed HB 2165 on Thursday as it passed 35-22 in the House. Two points of criticism were that the legislation would increase electricity bills and could give the utilities an unfair advantage in the charging station market.

The utilities are already doing some rate-based investments, but the bill would make it more automatic, requiring Portland General Electric and PacifiCorp to assess a charge of 0.25% on customer bills to raise funds for transportation electrification investments.

Oregon CUB, the state's official ratepayer advocate, endorsed the bill. Even at higher levels, CUB said, the investments would pay off for ratepayers by increasing electricity sales that support a distribution system that everyone pays for.

On the rebate side, HB 2165 removes a 2027 sunset on the state’s rebate program, and keeps $12 million flowing annually into the program from a 0.5% tax on new-vehicle sales in the state. It also increases the value of the add-on Charge Ahead rebate, available to low- and middle-income earners, from $2,500 to $5,000, meaning those residents could get rebates worth up to $7,500.