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California to transition clean vehicle rebate program to helping low-income residents

The California Air Resources Board will transition its existing Clean Vehicle Rebate Project (CVRP) program to a new program targeting low- and middle-income Californians.

In late 2023, a new program will expand statewide access to the existing Clean Cars 4 All program that gives residents up to $12,000 to scrap and replace older, polluting cars with cleaner alternatives, or will offer additional assistance through up to $7,500 in vehicle purchase grants for car buyers not scrapping an older vehicle, in addition to affordable financing options.

The existing CVRP program will continue to accept applications while funding remains available. Once funding has been exhausted, the program will close to new applications, and updated information will be available on the CVRP website.

Since its launch in 2010, the CVRP program has issued half a million rebates, totaling $1.2 billion.

The program was originally designed to encourage the early adoption of emerging technology, and its goal was to accomplish a 16% market share for clean vehicles. Now, California has 1.5 million zero-emission vehicles in use—two years ahead of schedule—and 1 out of 4 cars sold are clean vehicles.

CARB has provided $430 million in assistance to low- and middle-income Californians, which includes assistance to residents in areas that are designated as disadvantaged communities and low-income communities.

In recent months, applications for the CVRP program have increased, hitting a record 14,000 applications in July.

The state’s Clean Cars 4 All program, which focuses on low-income Californians, remains open in its current form, which targets the state’s five largest regional air districts. The program currently offers up to $9,500 toward a new clean vehicle or as much as $7,500 toward transit or other shared mobility options. Consumers can visit Access Clean California to explore the various incentives available for clean transportation.

The CVRP program is part of California Climate Investments, which funds the program with auction proceeds from the state’s Cap-and-Trade program. The Center for Sustainable Energy has administered the CVRP since its inception in 2009. The average rebate provided has been about $2,500.


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