The California Air Resources Board (CARB) is revamping its approach to clean vehicle incentives, transitioning the well-known Clean Vehicle Rebate Project (CVRP) into a program with a stronger focus on equity and accessibility. This strategic shift aims to ensure that all Californians, particularly those from low- and middle-income households, can benefit from the transition to zero-emission vehicles.
This significant change involves expanding the existing Clean Cars 4 All program statewide starting in late 2023. This initiative offers up to $12,000 to residents who scrap their older, more polluting vehicles and replace them with cleaner models. For car buyers who choose not to scrap an old vehicle, the program will also provide up to $7,500 in vehicle purchase grants, coupled with affordable financing options. While this transition unfolds, the CVRP will continue to accept applications until its current funding is depleted. Once the CVRP funds are exhausted, the program will close to new applications. The CVRP website will provide updated information throughout this process.
Dr. Steven Cliff, CARB’s Executive Officer, emphasized the importance of this evolution: “California, through its innovative policies and incentive programs, helped jumpstart the clean vehicle transformation that is underway, and the market has made it clear that zero emissions is the future. A clean air future is only possible if every Californian can access clean transportation options, and equity will continue to be a guiding priority for our future efforts to achieve carbon neutrality by 2045.”
CVRP’s Legacy and the Drive for Broader Impact
The CVRP has been instrumental in driving the adoption of clean vehicles in California since its inception in 2010. The program has successfully issued half a million rebates, totaling $1.2 billion, effectively assisting numerous Californians in making the switch to cleaner transportation. Initially designed to encourage early adoption of emerging electric vehicle technology and achieve a 16% clean vehicle market share, CVRP has surpassed its original goals.
California now boasts 1.5 million zero-emission vehicles on its roads, achieving this milestone two years ahead of schedule. Impressively, one in four new cars sold in California is a clean vehicle, solidifying the state’s position as the nation’s leading market for clean vehicles. Zero-emission vehicles are also becoming a major export for California. It’s estimated that the CVRP program has contributed to avoiding 9.9 million metric tons of greenhouse gas emissions to date, demonstrating its significant environmental impact. Furthermore, CARB has directed $430 million in assistance specifically to low- and middle-income Californians, including those residing in disadvantaged and low-income communities, ensuring that the benefits of clean transportation reach those who need them most.
The surge in CVRP applications, reaching a record 14,000 in July alone, underscores the program’s popularity and the opportune moment to broaden its reach. This success highlights the necessity of transitioning towards a more equitable system, ensuring that the shift to zero-emissions transportation includes every Californian.
Expanding Clean Cars 4 All: Reaching Underserved Communities
The state’s Clean Cars 4 All program, which is specifically designed to support low-income Californians, will play a central role in this new phase. Currently operating within California’s five largest regional air districts, Clean Cars 4 All offers significant incentives. Eligible residents can receive up to $9,500 towards the purchase of a new clean vehicle or up to $7,500 for transit options or shared mobility solutions when scrapping an older vehicle. Through Access Clean California, consumers can explore the diverse range of clean transportation incentives available throughout the state.
Alt text: Access Clean California website homepage displayed on a laptop, showcasing available clean vehicle incentive programs.
The CVRP is funded through California Climate Investments, utilizing proceeds from the state’s Cap-and-Trade program auctions. The Center for Sustainable Energy (CSE) has expertly administered the CVRP since its inception in 2009, with the average rebate amount being approximately $2,500.
Lawrence Goldenhersh, president of the Center for Sustainable Energy, reflects on the program’s impact: “CVRP incentives encouraged consumers to try out an EV to determine if it was more affordable to operate and more fun to drive – and EVs overwhelmingly met their expectations. CVRP played a material role in accelerating the consumer’s embrace of EV passenger vehicles in California, where one in four new light-duty vehicles purchased is an EV, and across the U.S. The light-duty EV market is now solidly established. What’s next is to expand access to more low-income consumers and those in communities impacted by air pollution from legacy fossil fuel vehicles.”
This transition signifies California’s ongoing commitment to a cleaner, more equitable transportation future, ensuring that the benefits of zero-emission vehicles are accessible to all residents through programs like the expanded Air Resources Board old car buy back and scrap initiative.
