Will California offer rebates on electric vehicles?

California recently surpassed 2 million zero-emission vehicles sold, roughly two years after the state celebrated its first million in zero-emission vehicle sales.  To maintain the momentum, Gov. Gavin Newsom has announced plans to introduce new state-level rebates if the federal government eliminates the current tax credit for clean vehicle purchases.

Newsom’s proposal would build upon the success of California’s previous Clean Vehicle Rebate Program, which concluded in 2023. During its tenure, the program supported the purchase of over 594,000 vehicles, saving more than 456 million gallons of fuel.

The funding for these new rebates could be sourced from the Greenhouse Gas Reduction Fund, a resource powered by California’s cap-and-trade program.

“Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay,” Newsom said in a Nov. 24 news release. “We will intervene if the federal tax credit is eliminated, doubling down on our commitment to clean air and green jobs in California. We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

In the third quarter of 2024, Californians purchased nearly 116,000 zero-emission vehicles, accounting for 26.4% of all new vehicle sales in the state. This surge reflects growing consumer interest in environmentally friendly transportation and the expanding accessibility of reliable charging infrastructure across California.

The state is prioritizing hard-to-reach and underserved areas, in an effort to ensure equitable access to clean transportation solutions. According to the California Air Resources Board, California now accounts for 30.3% of all zero-emission vehicles sold in the United States.

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Reaching 2 million zero-emission vehicle sales is just one step in California’s broader strategy for a cleaner transportation future. Newsom’s administration is focusing on a holistic approach, state officials said, which includes:

Clean fuel production: Expanding local production of alternative fuels to reduce reliance on fossil fuels.
Public transit investment: Enhancing public transportation and rail infrastructure to encourage sustainable commuting.
Smart grid development: Upgrading the electric grid to support the growing demand for clean energy.

The news and editorial staffs of Southern California News Group and The San Diego Union-Tribune had no role in this post’s preparation.

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