SACRAMENTO – The California Air Resources Board (CARB) has announced a significant shift in its clean vehicle incentive strategy, transitioning from the Clean Vehicle Rebate Project (CVRP) to a more equity-focused program. This new initiative aims to provide greater access to zero-emission vehicles for low- and middle-income Californians, ensuring a just and inclusive transition to a cleaner transportation future.
Later in 2023, California will launch a statewide expansion of the successful Clean Cars 4 All program. This revamped program will offer residents in targeted communities up to $12,000 to retire their older, high-polluting vehicles and replace them with cleaner alternatives. For car buyers who do not have an older vehicle to scrap, the program will also provide up to $7,500 in vehicle purchase grants, coupled with affordable financing options to further reduce the financial barriers to clean vehicle adoption. While this transition occurs, the existing CVRP program will continue to accept applications until its current funding is depleted. Once the CVRP funds are exhausted, the program will close to new applications, with updated information available on the CVRP website.
Dr. Steven Cliff, CARB’s Executive Officer, emphasized the state’s commitment to both environmental progress and social equity. “California’s pioneering policies and incentive programs have been instrumental in driving the clean vehicle revolution. The market has clearly embraced a zero-emission future,” Dr. Cliff stated. “However, a true clean air future must be accessible to all Californians. Equity will remain a core principle in our ongoing efforts to achieve carbon neutrality by 2045, ensuring everyone benefits from clean transportation options.”
The CVRP program has achieved remarkable success since its inception in 2010:
- CVRP has issued half a million rebates, totaling $1.2 billion, enabling numerous Californians to switch to cleaner vehicles.
- Initially designed to encourage early adoption of emerging clean vehicle technology, CVRP aimed for a 16% market share for these vehicles.
- California has now surpassed expectations with 1.5 million zero-emission vehicles on the roads, achieving this milestone two years ahead of schedule.
- Impressively, 1 in 4 new cars sold in California are now zero-emission vehicles, demonstrating a significant market shift.
- California leads the nation in clean vehicle adoption, and zero-emission vehicles are becoming a leading export for the state, boosting its green economy.
- The program’s environmental impact is substantial, estimated to have prevented 9.9 million metric tons of greenhouse gas emissions to date.
- CARB has directed $430 million in assistance specifically to low- and middle-income Californians, including residents in disadvantaged and low-income communities, ensuring that benefits reach those who need them most.
Recent months have seen a surge in CVRP applications, reaching a record 14,000 in July alone. This surge underscores the program’s popularity and the opportune moment to refine the approach. The transition aims to guarantee that all Californians, regardless of income level, can participate in the shift to zero-emission transportation. The Clean Cars 4 All program, which specifically targets low-income Californians, will continue in its current form, focusing on the state’s five largest regional air districts. Currently, this program offers up to $9,500 towards a new clean vehicle or up to $7,500 for transit or shared mobility options. Consumers are encouraged to explore the diverse range of clean transportation incentives available through Access Clean California.
The CVRP program is funded through California Climate Investments, utilizing proceeds from the state’s Cap-and-Trade program. The Center for Sustainable Energy has expertly administered the CVRP since its beginning in 2009. The average rebate amount provided through CVRP has been approximately $2,500.
Lawrence Goldenhersh, president of the Center for Sustainable Energy, reflected on the program’s impact: “CVRP incentives successfully encouraged consumers to experience EVs, demonstrating their affordability and driving enjoyment. EVs have overwhelmingly met and exceeded consumer expectations.” He added, “CVRP has played a crucial role in accelerating the adoption of EV passenger vehicles in California and across the U.S. The light-duty EV market is now firmly established. The next critical step is to broaden access to these benefits for more low-income consumers and communities disproportionately affected by air pollution from older fossil fuel vehicles. This evolution towards Affordable Car Loan Program Stimulus and expanded grant access is vital for achieving equitable clean transportation for all Californians.”
