Green Fleet

California Extends Clean Vehicle Rebate Project

March 25, 2013

The California Air Resources Board (ARB) put an additional $6 million into the state’s Clean Vehicle Rebate Project to provide funding for plug-in hybrid electric and zero-emission vehicles. Along with another infusion of $4.5 million from the California Energy Commission two weeks ago, the combined $10.5 million is expected to extend the rebate program until next year’s funds are available.

Under the rebate program, individuals, nonprofits, government entities, and businesses can get up to a $2,500 state rebate. This can be combined with an up to $7,500 clean vehicle federal tax credit and various other regional incentives.

Demand is currently very strong for zero-emission and plug-in hybrid electric vehicles, according to ARB. To date, ARB has issued more than $42 million and is closing in on the 20,000th rebate offered through its Clean Vehicle Rebate Project. Between 1,500 and 2,000 clean car rebates are now issued each month. Even though California is only 10% of the total car market, it now accounts for about 40%of all purchases of plug-in electric vehicles nationwide.

The program is also helping to fulfill Governor Brown’s executive order of March 2012 that directs state government to support and facilitate the rapid commercialization of zero-emission vehicles (ZEVs), with a target of having 1.5 million ZEVs on California roadways by 2025.

The Clean Vehicle Rebate Project is made possible by the 2007 law known as Assembly Bill 118. The bill, designed to spur development, and deployment of alternative and renewable fuels and advanced transportation technologies, will end in 2015. It is currently being considered by the Legislature for reauthorization to allow the rebate program, and other clean fuel and clean vehicle programs, to continue. AB 118 programs are funded through motor vehicle and vessel fees.

The Clean Vehicle Rebate Project is funded by the Air Resources Board and administered statewide by the California Center for Sustainable Energy.

For more information on the program and which cars and models qualify for rebates see:

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