California approves $2.6 billion for clean trucks and cars
18 November 2022
The California Air Resources Board (CARB) approved a “historic” $2.6 billion investment plan for incentives and subsidies to support California’s transition to zero-emission transportation. The investment represents the largest clean-transportation funding plan to date—previous funding totaled about $4 billion combined over the past 13 years.
This year’s funding is heavily weighted towards incentives for cleaner trucks and buses, but supported projects also include low-emission mobility options such as bike- and car-sharing, and consumer rebates for clean cars. The funding is focused on low-income communities and communities disproportionately burdened by environmental pollution, as well as small truck fleets.
Funded projects include:
- $2.2 billion for clean trucks and buses, and off-road equipment. This includes over $2 billion for zero-emission trucks and buses and off-road equipment including school buses, transit buses, and drayage trucks, $33 million for financing for small truck fleets transitioning to cleaner technologies, and $135 million for demonstration and pilot projects, including commercial harbor craft.
- $381 million for clean transportation equity projects. This includes $326 million for vehicle purchase incentives and $55 million for clean mobility investments.
The plan includes several program changes, including a big boost to clean car purchase incentives for lower-income buyers and increases support for small fleets. The changes include:
- Significant support for low-income consumers looking to purchase an electric car: Up to $15,000 in incentives for new electric vehicles without having to scrap an older vehicle and up to $19,500 for those who have an older car to scrap—an increase of $3,000 from current incentive levels.
- Streamlines and aligns programs: Simplifies income eligibility tiers to at or below 300% of the Federal Poverty Level and offers $2,000 prepaid electric vehicle charge cards for low-income consumers.
- Small fleet support: Introduces tiered voucher amounts to increase support for small fleets while encouraging early adoption of zero-emission technologies and large-scale deployments of zero-emission trucks in disadvantaged communities.
- Support for commercial harbor craft: Dedicates $60 million for cleaner commercial harbor craft.
The investments are part of California’s strategy for improving air quality and reducing greenhouse gas emissions in the transportation sector. The 2022 state budget expands these efforts by $6.1 billion—in addition to an existing multi-year $3.9 billion commitment—for a total investment of $10 billion through fiscal year 2026-27.
The goal is to accelerate California’s transition to clean cars, trucks, and off-road equipment to meet Governor Newsom’s Executive Order to reach 100% ZEV sales for cars and medium-duty trucks by 2035, and for heavy-duty trucks by 2045. The funds are part of the administration’s California Climate Commitment.
Source: CARB