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California Governor Vows to Relaunch State’s ZEV Rebate Program if Federal Tax Credit Ends

-Editorial 

California has once again solidified its position as the nation’s leader in clean transportation by surpassing the sale of two million zero-emission vehicles (ZEVs). This historic milestone comes just over two years after the state crossed the one million ZEV sales mark, demonstrating exponential growth in the adoption of electric, plug-in hybrid, and hydrogen-powered vehicles.

Governor Gavin Newsom celebrated the achievement while announcing a proactive measure to safeguard California’s progress should federal support for ZEVs be reduced under an incoming Trump Administration. If the federal ZEV tax credit is eliminated, Newsom plans to propose a revamped version of California’s successful Clean Vehicle Rebate Program (CVRP), which ended in 2023. During its tenure, the CVRP provided incentives for over 594,000 vehicles, saving more than 456 million gallons of fuel.

“We’re not turning back on a clean transportation future,” Governor Newsom stated. “Zero-emission vehicles are here to stay, and we’re doubling down on making them more affordable for Californians while creating green jobs and cleaner air.”

The proposed rebates could be funded through the Greenhouse Gas Reduction Fund, a resource sustained by polluters under California’s cap-and-trade program.

In the third quarter of 2024 alone, Californians purchased 115,897 ZEVs, accounting for 26.4% of all new vehicle sales in the state. This growing consumer demand underscores the state’s progress in developing a robust and accessible charging network. To date, California boasts over 150,000 public or shared private chargers and more than 500,000 at-home chargers.

Federal support has also played a significant role. In 2024, California secured $32 million in funding from President Biden’s Infrastructure Investment and Jobs Act to install and maintain 458 direct-current fast chargers (DCFC) along major highways. The state is now approved to spend an additional $81.7 million in federal funding next year.

Low-income Californians are also benefiting from targeted grants and rebates designed to make ZEV ownership more affordable.

California’s commitment to clean transportation extends beyond personal vehicles. The state has directed $102 million toward building charging and hydrogen fueling stations for zero-emission freight trucks along key corridors like Interstate 5. Additionally, $500 million has been allocated to deploy 1,000 ZEV school buses, reducing emissions in school districts while safeguarding children’s health.

California is accelerating the deployment of electric vehicle (EV) chargers while tackling challenges such as grid demand and regulatory hurdles. To achieve this, the state is gathering accurate data on charger availability and reliability, prioritizing shovel-ready projects eligible for federal and state incentives, and developing the comprehensive Zero-Emission Vehicle Infrastructure Plan (ZIP) to meet long-term goals. Efforts also include establishing reliability standards and updating transportation energy forecasts. Additionally, California is investing billions to expand EV infrastructure in underserved, low-income, and remote communities, ensuring equitable access to clean transportation.

California’s leadership in ZEV adoption is part of a broader strategy to transition to a clean transportation future. This includes prioritizing clean fuel production, enhancing public transit and rail systems, and creating a smarter electric grid to support increasing EV demand. The Newsom Administration is also exploring measures to prevent gasoline price spikes as the state reduces reliance on fossil fuels.

With 30.3% of all ZEVs sold in the U.S. purchased in California, the state continues to lead the nation in both vehicle adoption and infrastructure development. As Governor Newsom affirmed, “We are paving the way for a future that is cleaner, more sustainable, and more affordable for every Californian.”

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