California Breaks New Ground With Plug-In Electric Car Incentive Program For Low-Income Families
California has just launched a clean-car incentive program aimed squarely at assisting low-income families.
The idea is to help low-income families afford the cleanest cars in California’s most polluted regions.
Green Car Congress sums up the program quite well as follows:
The pilot program is available for three income levels:
Low Income (≤ 225% of the federal poverty level, FPL). Buyers in this income level who replace a scrapped car with a conventional hybrid car (e.g.Toyota Prius) that is less than 8 years old that gets 20 mpg or greater, are eligible for $6,500 in incentives. If the replacement car gets 35 mpg or greater (Toyota Prius or Honda Insight), that goes up to $7,000. A plug-in hybrid (e.g. Chevy Volt), or an electric car (e.g. Nissan Leaf) receives $9,500.
In addition, up to $2,000 for a charging unit at a single residence or multi-unit dwelling is available for the purchase of battery electric cars. In the case of either a brand new plug-in hybrid or electric car, buyers receive an additional $1,500 and $2,500, respectively, from a separate program, known as the Clean Vehicle Rebate Project.
Moderate Income (226% – 300% of FPL). Buyers who replace a scrapped car with a conventional hybrid model that gets 35 mpg or greater receive $5,000, rising to $7,500 for a plug-in hybrid or electric car. (In addition, buyers can receive up to $2,000 for a charging unit for battery electric cars, and if those are brand new cars, an additional $1,500 or $2,500, respectively.)
Above Moderate Income (301% – 400% of federal poverty level). Buyers who replace a scrapped car with a plug-in hybrid or electric car receive $5,500—which includes an additional incentive of up to $2,000 for the charging unit for battery electric cars, and an additional $1,500 or $2,500, respectively, if they are brand new.
For now, this pilot program is offered only in the Greater Los Angeles area and San Joaquin Valley.
Detailed press blast below:
California helps low-income families afford the cleanest cars,
saving them money on gas, cutting pollution, greenhouse gases
Old, dirty cars scrapped; incentives provided for cleaner cars in
California’s most polluted regions
SACRAMENTO – In coordination with local air officials, the Air
Resources Board is initiating a retire-and-replace pilot program
in the Greater Los Angeles area and San Joaquin Valley to help
people of low income replace old, polluting cars with cleaner,
more fuel efficient vehicles that also cut greenhouse gas
“What’s not to like about a program that cuts greenhouse gases,
cleans the air and helps low-income families in the most polluted
neighborhoods afford the cleanest, most fuel-efficient cars? And,
as icing on the cake, it will put money in their wallets by
slashing what they spend at the pump,” Air Resources Board
Chairman Mary D. Nichols said. “Thanks to the leadership of
Senate Pro Tem Kevin de León, the Plus-Up program is a smart
investment in California’s hardest hit communities, and fulfills
the promise that California’s efforts to fight climate change
will benefit us all.”
The air district-administered program provides incentives on a
sliding scale, with larger cash payments for the lowest-income
families moving up to the cleanest cars. The lowest-income
recipient purchasing the very cleanest car receives the highest
incentive amounts. Under the program, it is possible for a family
that meets income guidelines to receive as much as $12,000 toward
the purchase of an electric car.
Consumers can choose to replace their vehicle with a more fuel
efficient conventional gasoline-powered car, a conventional
hybrid, a plug-in hybrid or an electric car. Eligible consumers
will receive between $2,500 and $12,000, depending on their
income and the type of replacement vehicle they choose.
Income and residence
The pilot program is available for three income levels — those
with a household income equal to or less than 225 percent of the
federal poverty level (FPL), those between 226 and 300 percent of
the FPL, or those between 301 and 400 percent of the FPL.
Low-income consumers in either of the two participating regions
who would like to replace their dirty vehicle with a more fuel
efficient conventional vehicle, a conventional hybrid, a plug-in
hybrid or an electric car would qualify to receive up to $4,500.
Additional funding is available for low-income recipients who
live in a ZIP code that contains a ‘disadvantaged’ census tract
for the purchase of a conventional hybrid, plug-in hybrid or
electric replacement vehicle. (SB 535, introduced by State
Senator Kevin de Leon, directs funds to provide economic and
health benefits to the state’s disadvantaged communities — those
that are most impacted by both poverty and pollution.)
Eligible consumers also may qualify for:
• Up to $2,000 for a charging unit at your single residence
or multi-unit dwelling for the purchase of battery electric cars;
• An additional $1,500 and $2,500, respectively, for the
purchase or lease of a new plug-in hybrid or electric car from a
separate program known as the Clean Vehicle Rebate Project.
Money for transit
Finally, residents who scrap an old, dirty car but choose not to
replace it are eligible for public transit passes valued at
between $2,500 and $4,500, depending on their income.
ARB worked for more than a year with the South Coast Air Quality
Management District and the San Joaquin Valley Air Pollution
Control District in support of the development of the pilot
projects. Each air district developed a program tailored to the
individual needs of that district. The program (also known as the
Enhanced Fleet Modernization Program and Plus-Up Pilot Project)
is partially funded by proceeds from cap-and-trade revenue under
the California Climate Investments Initiative and AB 118.
Besides SB 535, another bill helping to drive the program is SB
1275, the Charge Ahead California Initiative, also introduced by
Senator de Leon, which aims to ensure that low-income
Californians, who are disproportionately impacted by air
pollution, benefit from California’s transition to a clean
Governor Jerry Brown issued an Executive Order in March 2012
calling for 1.5 million zero-emission vehicles on California
roadways by 2025. And in January, Governor Brown made climate
change and carbon pollution a core part of his agenda, calling
for California to cut in half petroleum use from cars and trucks
For more information on the program, visit http://bit.ly/1FZBney
for the fact sheet.
For more details, contact the San Joaquin Valley Air Pollution
Control District at (559) 230-6000 or the South Coast Air Quality
Management District at (909) 396-2647.