Oregon halts electric vehicle rebates due to demand, money

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SALEM, OREGON (AP) – Oregon will temporarily suspend rebates for buying or leasing an electric vehicle (EV) for a year starting in May because too many people are applying and the programme is running out of money, The Oregonian/OregonLive reported on Thursday.

A growing number of Oregonians are buying or leasing EVs, with over 60,600 registered in the state.

The Oregon Department of Environmental Quality announced on Wednesday the suspension of the Clean Vehicle Rebate Programme that has disbursed more than USD71 million over five years to help people buy or lease roughly 25,000 of those vehicles. A fifth of the rebates went to low- and moderate-income households, state data shows.

Since the end of 2018, the state has offered two cash rebates for Oregon drivers who buy or lease electric vehicles or plug-in hybrids under USD50,000. The standard rebate of up to USD2,500 is available regardless of income and can be received at participating dealers. The “charge ahead” rebate of USD5,000 is aimed at low or moderate-income households and must be accessed via a mail-in application. The two rebates can be combined for up to USD7,500 cash back.

“Even though we’re announcing a temporary suspension, it really shows the programme is a victim of our own success,” senior air quality planner with the environmental quality department Rachel Sakata said. “We’re one of the top states in the nation in terms of the percentage of EV sales.”

Oregon’s Department of Transportation estimates that people will be driving 1.5 million EVs in the state by 2035. About 3.2 million passenger vehicles are registered in Oregon today. Since the end of 2018, the state has offered two cash rebates for Oregon drivers who buy or lease EVs or plug-in hybrids under USD50,000.