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Washington State's ambitious $45 million Electric Vehicle (EV) Instant Rebate Program, aimed at making EVs more affordable and reducing carbon emissions, has been criticized for not meeting expectations. A recent policy brief by the Washington Policy Center (WPC) revealed that the program did not deliver the promised environmental benefits or provide much assistance to middle-income earners. The program, which was launched by the Washington State Department of Commerce, promised up to $9,000 off the lease of a new EV for low-income drivers. The state claimed that this rebate would make EV leases affordable, potentially bringing payments down to under $200 per month – far below the average $700 monthly payment for a gas-powered vehicle. However, after analyzing vehicle registration data for the two-and-a-half months the program was active, experts concluded that the program fell short of its goals. Failure to Meet Expectations Todd Myers, Vice President for Research at WPC, expressed disappointment with the outcome during an interview with The Center Square. He explained that the program was expected to increase sales of EVs and plug-in hybrid vehicles by about 8,700 units. In reality, it achieved only half of that target, with only around 4,800 vehicles sold through the rebate program. Myers pointed out that the environmental impact was minimal, saying, “For $45 million, we reduced emissions by just 0.03%. That’s virtually nothing for taxpayer money.” Despite the high cost of the program, the actual CO2 emissions reduction was almost negligible. Program Favors Higher-Income Earners One of the program's main goals was to provide assistance to low- and middle-income residents, making EVs accessible to those who traditionally struggle to afford them. However, data revealed that this was not the case. Before the rebates were introduced in August, the average income of individuals buying cars in the participating ZIP codes was around $122,000. After the program started, this dropped slightly to $118,000, indicating that the rebates were largely claimed by individuals with relatively high incomes. “The same people who were buying electric vehicles before the subsidies were still the ones purchasing them during the rebate period,” Myers said. “They’re certainly not poor.” Unintended Beneficiaries: Wealthy Buyers The WPC report highlighted that the rebate program disproportionately benefited wealthier buyers, particularly those purchasing popular models like the Tesla Model 3. Tesla sales more than doubled during the subsidy period compared to 2024 sales before the rebates. For example, buyers could receive $9,000 from Washington State, and an additional $7,500 from the federal government, totaling $16,500 in taxpayer-funded subsidies. While these subsidies may have made EVs more affordable for some buyers, they did not help to significantly shift the market toward low-income individuals. Myers called this outcome a waste of taxpayer money, especially considering that the program fell far short of its environmental goals. A Step Backward for Environmental Goals? The WPC’s analysis also pointed out that while the EV market in Washington State did see growth, it wasn't as significant as hoped. By October, EVs and plug-in hybrids accounted for just 21.8% of new vehicle sales in Washington, a slight increase over the 2023 level of 20.5%. This falls well short of the 35% target for 2026. Andrew Wineke, Deputy Communications Director for the Washington Department of Ecology, defended the program, pointing out that Washington is a national leader in the transition to clean vehicles. He noted that more than 200,000 zero-emission vehicles are now on the road in the state, with a 30% increase in sales over the past year. Wineke further stated that the rebates are just one tool in a larger strategy to accelerate the adoption of clean vehicles. The state's zero-emission vehicle regulations are expected to continue driving progress toward their long-term targets. What’s Next for EV Programs in Washington? Despite the program's shortcomings, Governor Jay Inslee's outgoing budget proposal included a request for an additional $82 million to extend and expand the EV rebate program for the current biennium. The question remains whether the new administration, under Gov. Bob Ferguson, will continue this initiative. The Center Square reached out to Gov. Ferguson's office for comment, but no response was received at the time of publication. As the debate continues, it remains to be seen how Washington will adjust its strategy to meet the state’s environmental and economic goals.

Washington’s EV Subsidy Program Favors Wealthy Buyers, Fails to Meet Environmental Goals

Sandy Staggs

Washington State’s ambitious $45 million Electric Vehicle (EV) Instant Rebate Program, aimed at making EVs more affordable and reducing carbon emissions, has been criticized for not meeting expectations. A recent policy brief by the Washington Policy Center (WPC) revealed that the program did not deliver the promised environmental benefits or provide much assistance to middle-income earners.

The program, which was launched by the Washington State Department of Commerce, promised up to $9,000 off the lease of a new EV for low-income drivers. The state claimed that this rebate would make EV leases affordable, potentially bringing payments down to under $200 per month – far below the average $700 monthly payment for a gas-powered vehicle. However, after analyzing vehicle registration data for the two-and-a-half months the program was active, experts concluded that the program fell short of its goals.

Failure to Meet Expectations

Todd Myers, Vice President for Research at WPC, expressed disappointment with the outcome during an interview with The Center Square. He explained that the program was expected to increase sales of EVs and plug-in hybrid vehicles by about 8,700 units. In reality, it achieved only half of that target, with only around 4,800 vehicles sold through the rebate program.

Myers pointed out that the environmental impact was minimal, saying, “For $45 million, we reduced emissions by just 0.03%. That’s virtually nothing for taxpayer money.” Despite the high cost of the program, the actual CO2 emissions reduction was almost negligible.

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Program Favors Higher-Income Earners

One of the program’s main goals was to provide assistance to low- and middle-income residents, making EVs accessible to those who traditionally struggle to afford them. However, data revealed that this was not the case. Before the rebates were introduced in August, the average income of individuals buying cars in the participating ZIP codes was around $122,000. After the program started, this dropped slightly to $118,000, indicating that the rebates were largely claimed by individuals with relatively high incomes.

“The same people who were buying electric vehicles before the subsidies were still the ones purchasing them during the rebate period,” Myers said. “They’re certainly not poor.”

Unintended Beneficiaries: Wealthy Buyers

The WPC report highlighted that the rebate program disproportionately benefited wealthier buyers, particularly those purchasing popular models like the Tesla Model 3. Tesla sales more than doubled during the subsidy period compared to 2024 sales before the rebates. For example, buyers could receive $9,000 from Washington State, and an additional $7,500 from the federal government, totaling $16,500 in taxpayer-funded subsidies.

Washington State's ambitious $45 million Electric Vehicle (EV) Instant Rebate Program, aimed at making EVs more affordable and reducing carbon emissions, has been criticized for not meeting expectations. A recent policy brief by the Washington Policy Center (WPC) revealed that the program did not deliver the promised environmental benefits or provide much assistance to middle-income earners. The program, which was launched by the Washington State Department of Commerce, promised up to $9,000 off the lease of a new EV for low-income drivers. The state claimed that this rebate would make EV leases affordable, potentially bringing payments down to under $200 per month – far below the average $700 monthly payment for a gas-powered vehicle. However, after analyzing vehicle registration data for the two-and-a-half months the program was active, experts concluded that the program fell short of its goals. Failure to Meet Expectations Todd Myers, Vice President for Research at WPC, expressed disappointment with the outcome during an interview with The Center Square. He explained that the program was expected to increase sales of EVs and plug-in hybrid vehicles by about 8,700 units. In reality, it achieved only half of that target, with only around 4,800 vehicles sold through the rebate program. Myers pointed out that the environmental impact was minimal, saying, “For $45 million, we reduced emissions by just 0.03%. That’s virtually nothing for taxpayer money.” Despite the high cost of the program, the actual CO2 emissions reduction was almost negligible. Program Favors Higher-Income Earners One of the program's main goals was to provide assistance to low- and middle-income residents, making EVs accessible to those who traditionally struggle to afford them. However, data revealed that this was not the case. Before the rebates were introduced in August, the average income of individuals buying cars in the participating ZIP codes was around $122,000. After the program started, this dropped slightly to $118,000, indicating that the rebates were largely claimed by individuals with relatively high incomes. “The same people who were buying electric vehicles before the subsidies were still the ones purchasing them during the rebate period,” Myers said. “They’re certainly not poor.” Unintended Beneficiaries: Wealthy Buyers The WPC report highlighted that the rebate program disproportionately benefited wealthier buyers, particularly those purchasing popular models like the Tesla Model 3. Tesla sales more than doubled during the subsidy period compared to 2024 sales before the rebates. For example, buyers could receive $9,000 from Washington State, and an additional $7,500 from the federal government, totaling $16,500 in taxpayer-funded subsidies. While these subsidies may have made EVs more affordable for some buyers, they did not help to significantly shift the market toward low-income individuals. Myers called this outcome a waste of taxpayer money, especially considering that the program fell far short of its environmental goals. A Step Backward for Environmental Goals? The WPC’s analysis also pointed out that while the EV market in Washington State did see growth, it wasn't as significant as hoped. By October, EVs and plug-in hybrids accounted for just 21.8% of new vehicle sales in Washington, a slight increase over the 2023 level of 20.5%. This falls well short of the 35% target for 2026. Andrew Wineke, Deputy Communications Director for the Washington Department of Ecology, defended the program, pointing out that Washington is a national leader in the transition to clean vehicles. He noted that more than 200,000 zero-emission vehicles are now on the road in the state, with a 30% increase in sales over the past year. Wineke further stated that the rebates are just one tool in a larger strategy to accelerate the adoption of clean vehicles. The state's zero-emission vehicle regulations are expected to continue driving progress toward their long-term targets. What’s Next for EV Programs in Washington? Despite the program's shortcomings, Governor Jay Inslee's outgoing budget proposal included a request for an additional $82 million to extend and expand the EV rebate program for the current biennium. The question remains whether the new administration, under Gov. Bob Ferguson, will continue this initiative. The Center Square reached out to Gov. Ferguson's office for comment, but no response was received at the time of publication. As the debate continues, it remains to be seen how Washington will adjust its strategy to meet the state’s environmental and economic goals.
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While these subsidies may have made EVs more affordable for some buyers, they did not help to significantly shift the market toward low-income individuals. Myers called this outcome a waste of taxpayer money, especially considering that the program fell far short of its environmental goals.

A Step Backward for Environmental Goals?

The WPC’s analysis also pointed out that while the EV market in Washington State did see growth, it wasn’t as significant as hoped. By October, EVs and plug-in hybrids accounted for just 21.8% of new vehicle sales in Washington, a slight increase over the 2023 level of 20.5%. This falls well short of the 35% target for 2026.

Andrew Wineke, Deputy Communications Director for the Washington Department of Ecology, defended the program, pointing out that Washington is a national leader in the transition to clean vehicles. He noted that more than 200,000 zero-emission vehicles are now on the road in the state, with a 30% increase in sales over the past year.

Wineke further stated that the rebates are just one tool in a larger strategy to accelerate the adoption of clean vehicles. The state’s zero-emission vehicle regulations are expected to continue driving progress toward their long-term targets.

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What’s Next for EV Programs in Washington?

Despite the program’s shortcomings, Governor Jay Inslee’s outgoing budget proposal included a request for an additional $82 million to extend and expand the EV rebate program for the current biennium. The question remains whether the new administration, under Gov. Bob Ferguson, will continue this initiative.

The Center Square reached out to Gov. Ferguson’s office for comment, but no response was received at the time of publication. As the debate continues, it remains to be seen how Washington will adjust its strategy to meet the state’s environmental and economic goals.

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