The Colorado Energy Office is launching a new trade-in program this week designed to expand access to electric cars. The program will offer rebates for EV purchases in exchange for old gas-powered or high-emission vehicles.
The program, called Vehicle Exchange Colorado, will provide a $6,000 rebate for purchasing a new electric car and $4,000 rebate for buying a used one. The rebates can also be used to lease an electric vehicle.
“There are multiple benefits to this program,” Vehicle Exchange Colorado Program Manager Ed Piersa said. “It will benefit all Coloradans by helping improve air quality, and reduce greenhouse gas emissions.”
About 70 dealerships have pre-registered to participate in the program, which is part of the state’s plan to increase the number of EVs on Colorado roads to 940,000 by 2030. There are about 90,000 EVs in the state at present.
The program is also specifically designed to make EVs more available to low- and middle-income people. Only Coloradans who make 80% or less of an area’s median income will be eligible for the rebates, and rebates will also only apply to cars that have a retail value of $50,000 or less.
“In part due to cost, many low- to moderate- income people in Colorado have not had access to electric vehicles, despite being disproportionately impacted by poor air quality and high fuel prices,” Piersa said. “This program will help bridge that gap.”
Piersa also said he would like the program to address disparities in access between urban and rural areas of the state.
The program's rebates can be combined with other financial incentives for electric vehicles. For example, a person using a Vehicle Exchange Colorado rebate to help purchase an EV can also use a different rebate offered by Xcel Energy. Rebates can also be combined with either federal or state EV tax incentives, but not both.
Other than fully electric cars, Vehicle Exchange Colorado credits can also be used for purchasing certain hybrid vehicles. Currently, only plug-in hybrids are eligible, which can only drive a short distance using electricity. Piersa said the program might also include fuel-cell hybrids down the line, which require gas to operate.
Climate advocates, however, are disappointed that hybrids are included in the program at all.
“I feel like we could be bolder,” Heather Leathwood, climate policy analyst with 350 Colorado, said. “I really wish (the rebates) were just for EVs because once people own a hybrid, then that slows down their transition to get a pure EV.”
Leathwood also said environmental officials should use a variety of tactics to address air pollution, including discouraging people from driving altogether by improving public transportation and making it easy for people to bike and walk.
“We definitely can't depend only on EV adoption to reach our greenhouse gas reduction goals. We also need a strong transit policy and improving our bike and pedestrian infrastructure to reduce driving from all types of vehicles,” Leathwood said. “It's really important to build out transit. I do think that we can do it, if the state puts enough resources and commitment behind it.”
At the end of the day, though, Leathwood said the program is an important step in the right direction, especially since it expands access to EVs for lower-income folks.
Applications for Vehicle Exchange Colorado will open Thursday, August 31, at 9 a.m. Coloradans can find more information about the various EV financial incentives available to them through the state’s electric vehicle education initiative.
