California pivots state EV incentives to lower-income drivers

This week, California announced that it would revamp its primary EV incentive programme to concentrate on drivers with middle- and extremely low incomes.

In place of the Clear Automobile Rebate Undertaking (CVRP), the California Air Resources Board (CARB), which is in charge of the state’s EV incentives and pollution regulations, will expand the current Clean up Autos 4 All plan statewide in late 2023.

The Clean Autos 4 All programme takes applicants’ income into account, unlike the CVRP. The programme will provide up to $12,000 to California residents who scrap and replace older, higher-polluting vehicles with cleaner alternatives in its expanded statewide form, or up to $7,500 for qualifying residents who aren’t changing a motor vehicle, as well as “cost-effective funding opportunities,” according to the press release.

Nissan Leaf, 2024

When financing is still easily accessible, the CVRP will continue to accept applications. The Clean Cars 4 All programme, which offers residents of California’s five clean-air districts up to $9,500 towards a new car or truck or $7,500 towards “transit or other shared mobility possibilities,” will likewise remain in its current form until the CVRP expires.

Since its inception in 2010, the CVRP has given out half a million reimbursements for a total of $1.2 billion, at an average cost of around $2,500 per payout, according to CARB. However, it was always intended to be a short-term strategy, and in recent years CARB has attempted to reduce the amount of rebates going to the highest-earning drivers with earnings and MSRP limitations.

The California Clean up Gasoline Reward (CCFR) incentive programme, which has been temporarily discontinued, is distinct from the CVRP. While the CVRP requires an individual application immediately after purchasing or leasing a car, the CCFR is a place-of-sale refund that was made available promptly. Additionally, it won’t have income or MSRP ceilings.

Chevrolet Equinox EV 2024

California currently has EVs or plug-in hybrids in one out of every four new cars, but there is still a long way to go before the state achieves its goal of having charge ports in every new car by the year 2035. That will partially depend on improved charging infrastructure, which California plans to address with a $2.9 billion application that will significantly increase the number of EV chargers in the state.

But another crucial piece of the emissions-reduction equation would be a continuing review of EV subsidies. In addition to focusing on drivers with lower incomes, California has considered modifying its EV strategy to cater to so-called “gasoline superusers,” who consume an excessive amount of gasoline.