$3 Billion California EV Subsidy Plan Now Replaced By CARB Study

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SEP 10 2017 BY STEVEN LOVEDAY 13

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Tesla Model 3

California will now have to wait a few more years to find out if new EV rebate plans will be established.

A few months back we reported about a bill calling for $3 billion in funding for additional EV incentives in California. The bill was aiming to appeal to lower income buyers by making rebates available at the point of sale. Additionally, the legislation would set aside some of the monies for EV charging infrastructure.

2017 Chevrolet Bolt EV

Chevrolet Bolt

Then in late August, the $3 billion was removed from the bill and no other monies were added. The original bill also included monetary adjustments to the current EV rebate scheme. This information was removed as well. Instead, the bill was rewritten to mandate that the California Air Resources Board (CARB) begins a study to seek the best ways to draft and implement new EV rebate legislation.

The bill, in its original form, was opposed due to the request for billions without any identified any funding sources. It was also said to include confusing language, lack of detail, and multiple revisions.

The good news is that CARB will be working on new EV bills. However, the bad news is that the report isn’t due until September 1, 2019. At least at that point, there should be many new EVs on the market with which to take advantage of whatever CARB comes up with.

CARB’s final report will be required to recommend viable changes to the current EV rebate program, which will work to increase electric car adoption. The document will also calculate how much funding will be needed to assure that state emissions goals are adequately met. According to the bill’s new language, CARB will be able to hire a contractor to process this report.

The new, altered bill will go in front of full legislation at a later date.

Source: Ventura County Star

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13 Comments on "$3 Billion California EV Subsidy Plan Now Replaced By CARB Study"

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As a Californian, I’m glad to see that the subsidies have been shelved. As written, it would’ve been backfilling the Federal credit as it phases out and that simply isn’t necessary anymore.

I have to disagree with this. EVs still have very small market penetration. Furthermore they are about $10,000 more expensive than comparable gas cars. The rebates are still needed to make them competitive.

Nevermind that the “comparable” gasoline car comes with a mandatory $15,000 in fuel expenses required over the lifetime of the car (10 years x 15K miles/year x $0.10/mile = $15K). And that’s if gasoline prices don’t go up over the next decade.

The electricity “fueling” costs are a fraction of that.

Gasoline cars will also require several thousand dollars in maintenance over their lifetime as well.

The only problem with that is CA electric costs are so high that the fuel savings is minimized.

Here is the way I see it. CA has laws that force the electricity costs way over the normal. This is great for conservation but bad for car electrification. An extra rebate/credit for CA is very logical. They should pay for it of course with a gas tax….

That’s not correct. You can get a rate which lets you get relatively cheap power at night ($0.11/kWhr) in California. It’s significantly cheaper than gasoline.

So IOW if you didn’t already get your $1,500 or $2,500 you aren’t gonna get it, at least any time soon?

May be time to change my address to OR!!

The good news is that CARB will be working on new EV bills. However, the bad news is that the report isn’t due until September 1, 2019.

What’s going to happen between now and then? Is California’s State tax rebate on EVs going to expire soon, or before Sep 1, 2019?

I wish this article had more information.

All funds have been exhausted unless you are below the federal poverty level. So essentially the program is over. People making $40k/year should not be buying a $30-40k vehicle.

Well probably not. But should that person lease a $100 a month car? Might be even less with a full rebate on a Leaf for instance.

People in CA need to get around. Hard to beat a TCO of a subsidized lease vs an old car. And then you have 3 year old $8k Leafs – with an amazing TCO also.

This is bad news across the board. Why does CARB need two full years to come up with a report? Why wouldn’t a single year, let along six months be enough? Talk about slow moving bureaucracy.

Also does this mean the current rebates aren’t being funded? So people are just out of luck if they haven’t received theirs yet?

I thought boosting the CA EV program was reliant on revenues from state cap & trade? That program has spawned billions. With transportation exceeding electric sector CO2 (U.S.), it doesn’t seem far fetched to juice an EV program. Legislators, OTOH, understandably must have been wide-eyed at how far the 3bn goes when it comes to EV support. Effective policy can seem, well, “political”.

You can jockey the $7,500 fed credits a number of ways, but I don’t think the federal government has forgone 3bn, yet, in any given year’s tax revenues (?). It makes sense when you consider it’s limited by installed KWh, and most makers are going small. But, again, that ~3bn is a whole lot more political than the other 3,000+ billion the government spends.

11/8/17
The evening of the 6th of Nov. I signed a lease agreement with Ford for the C-Max hybrid. The salesman repeatedly said I was going to get $1500 back from the state. It appears from what I’m reading here that this program ended some time ago-so apparently he was lying. When exactly did it end?

Hey Marcia,

It did not end, but the funding (again) ran out early for this year. This 3 billion proposal died, but the CVRP did not…and was recently re-funded (with ~140 million)

So apply away, you will get your $1,500…but you will need to be a bit patient, as they don’t work all that quickly.