PlugInSites

This was a good year for Maryland electric vehicle legislation. A number of bills that are of interest to EV drivers passed the legislature and have been sent to Governor Hogan to sign.

PlugInSites followed the progress of over a dozen electric vehicle related bills in the Maryland General Assembly in 2021. About half of the EV bills passed. In general, only about one in three bills pass in Annapolis in any given year, so we did pretty good.

Here is a brief rundown of what passed, what didn’t and what changes were made along the way.

The Maryland Electric Vehicle Tax Credit

The Clean Cars Act of 2021 (HB 44), as introduced, had several goals. First was to fund the backlog of applications from EV purchasers who are on the waitlist from the prior EV tax credit program. Then to extend the tax credit for two more years. And finally it was to extend the EV charging equipment rebate and increase annual funding. The good news is that the funding for the backlog stayed in the bill. That is welcome news for EV drivers who have been waiting for their checks of up to $3,000. In addition, the Electric Vehicle Recharging Equipment Rebate Program will be extended for two more years and the funding will increase from $1.2M to $1.8M annually.

Unfortunately, the part of the original bill to extend the EV excise tax credit was removed. This came about because of concern over a provision in the federal COVID-19 relief act that prohibits states from using any of the $195 billion of federal aid “to either directly or indirectly offset a reduction” in net tax revenue. For official information about the Maryland Excise Tax Credit for Plug-in Electric Vehicles, visit the MVA Website.

Pre-Wiring for EV Charging

House Bill HB 784 to encourage buyers of new residential housing units to pre-wire their homes for EV charging passed in the final hours of the session. This bill was sponsored by my representative, Delegate Jen Terrasa. I testified in support of this bill in the Senate Education, Health, and Environmental Affairs Committee along with EV advocate Paul Verchinski who is a big proponent of this legislation. This will ensure that home builders inform buyers that they have the option to include a Level 2 charging station or a dedicated electric line in their garage, carport or driveway. The builder must also provide information about EVSE rebate programs and other incentives.

Right-to-Charge

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 Lifting Charging Restrictions at Condos and HOAs

If your Maryland condominium or homeowners association ever said that you’re not allowed to install an EV charging station in your designated parking space, then you may soon have recourse. The General Assembly in Annapolis just passed a “Right to Charge” bill that would make Maryland the 9th state to remove such restrictions. The bill, (HB110) sponsored by Delegate Marc Korman of Montgomery County and cross-filed (SB144) by Senator Guy Guzzone of Howard County, is now headed to the Governor to be signed into law.

Maryland will join Florida, New York, Virginia, and five other states to prohibit HOAs and condo boards from arbitrarily denying permission for a homeowner to install an electric vehicle charging station. It would make void and unenforceable any covenants or restrictions of a condominium or homeowners association if they prohibit or unreasonably restrict the installation or use of electric vehicle recharging equipment in an owner’s deeded or designated parking space.

This bill gives homeowners the right to install a charging station in their parking spot as long as they pay for the costs of installation, maintenance, electricity and subsequent removal upon moving. Many people in Maryland live in housing that is governed by an HOA or condo board. Addressing the issue of charging at multi-family units is important to achieve the full potential of electric vehicle adoption in the state.

A Five Year Journey

This legislation has a history in Maryland going back at least five years. I’ve testified in support of Maryland Right to Charge since 2016. It seemed that the opposition from the HOA groups was strong and overwhelming back then. It seemed impossible to reconcile at the time. Consequently, the bills in 2016, 2017 and 2018 failed.

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Virginia House Bill 1979

Virginia Delegate David Reid of Loudoun County is proposing a rebate for Virginians who buy or lease an electric vehicle. The legislation will be introduced when the Virginia General Assembly convenes on January 13, 2021.

Used Vehicles Would Qualify

HB 1979 proposes that an individual who buys or leases a new or used electric motor vehicle from a dealer in Virginia and registers the vehicle in Virginia would be eligible for a $2,500 rebate. An additional $2,000 rebate would be available for certain income qualified individuals.

For the purposes of the rebate program, an electric motor vehicle “means a motor vehicle that uses electricity as its only source of motive power. ‘Electric motor vehicle’ includes fuel cell electric vehicles.”

UPDATE: I reached out to Delegate Reid to clarify if the bill would include incentives for plug-in hybrid electric vehicles (PHEVs). He explained that right now, it does not include PHEVs or fleet vehicles. The reason being that there is a limited amount of money to get started with and they were looking for where the program could be scaled back in a way that they can achieve the environmental benefits of being able to get carbon out of the transportation sector in a manner that would provide the most bang for the buck. Given the budget constraints of the moment, the program is designed to begin by focusing just on battery electric vehicles.

Delegate Reid says he wants to be able to get consumers familiar with the idea that electric vehicles are a viable alternative for basic transportation. In the future, once the program moves forward and other sources of revenue are identified to fund the program, they can add plug-in hybrids, fleet vehicles and more.

Summary as Introduced

Electric vehicle rebate program; creation and funding; report. Creates a rebate program for the purchase or lease of new and used electric vehicles, to be administered by the Department of Mines, Minerals and Energy. A purchaser or lessee of an electric vehicle would receive a $2,500 rebate at the time of purchase, and a purchaser or lessee with an annual household income that does not exceed 300 percent of the federal poverty level would be entitled to an additional $2,000 rebate. The motor vehicle dealer where the vehicle is purchased or leased would receive a refund for the amount of the rebate and a $50 incentive payment for each rebate processed. Funds would be allocated from the revenues generated by the sunset of the Virginia Coal Employment and Production Incentive Tax Credit and the Coalfield employment enhancement tax credit and prohibit the allocation of new credits on and after January 1, 2021. The bill also establishes an Electric Vehicle Rebate Advisory Council to oversee the Electric Vehicle Rebate Program and to make recommendations regarding its implementation. The Director of the Department of Mines, Minerals and Energy is required to report annually to the Governor and the General Assembly regarding the Program. The Program will expire on September 1, 2026.

Summary of Virginia HB 1979 as introduced.

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