California Energy Commission awards $4.5M to ARB for more clean vehicle rebates

1 March 2013

The California Energy Commission voted to expand the state’s clean-vehicle rebate program with an award of $4.5 million to the California Air Resources Board through an interagency agreement to provide funding for the Clean Vehicle Rebate Project. This funding will be used to support purchases of light-duty zero-emission electric vehicles and light-duty plug-in hybrid electric vehicles. All vehicles must be capable of freeway operation and certified for at least four passengers.

The rebate program is administered by the California Center for Sustainable Energy, which was selected by the Air Resources Board through a competitive bid process.

The California Air Resources Board has issued approximately 18,000 rebates totaling $41 million through its Clean Vehicle Rebate Program. California has accounted for about 40% of all purchases of plug-in electric vehicles nationwide during the past two years even though the state only constitutes 10% of the national vehicle market.

The award was made through the Commission’s Alternative and Renewable Fuel and Vehicle Technology Program, created by Assembly Bill 118. For the current fiscal year, the program is slated to invest approximately $90 million to encourage the development and use of new technologies, and alternative and renewable fuels, to help the state meet its climate change goals. It is funded through vehicle and boat registration fees, as well as smog check and license plate fees.