California Air Resources Board

SACRAMENTO – The California Air Resources Board (CARB) today announced the launch of a new $242 million effort, the Driving Clean Assistance Program (DCAP), which will prioritize low-income Californians who need grants and loan assistance to get a zero-emission vehicle.

With nearly 2 million zero-emission vehiclessold in California and clean cars representing 25% of total new car sales, the new program focuses on providing incentives that ensure low-income Californians are not left behind. DCAP will largely benefit communities in parts of the state that do not already have assistance programs, including many tribes and rural communities. Imperial County will be the first to roll out the program.

In exchange for scrapping an older vehicle, eligible participants can receive up to a $12,000 grant to purchase or lease a new or used zero-emission vehicle, in addition to $2,000 for electric charging costs. The assistance can be used to purchase zero-emission cars, motorcycles or e-bikes, and low-interest loans will also be available.

“California has ambitious goals of achieving carbon neutrality and a clean air future, but reaching those targets is not possible if Californians are priced out of clean transportation options,” said CARB Executive Officer Dr. Steven Cliff. “The new Driving Clean Assistance Program provides a necessary focus on low-income Californians, bringing zero-emission technology and increased transportation options to underserved communities across the state.”

DCAP will offer tailored assistance to priority participants to ensure that the application process does not impose a barrier. Applicants must be at or below 300% of the federal poverty level. Purchase assistance of $7,500 is available to eligible participants who either do not have a vehicle to scrap or wish to use it toward other mobility options such as carsharing. Eligible applicants also have access to vehicle loans capped at 8% through partnerships with a variety of credit unions.  

DCAP expands access to areas of the state that are not currently eligible for air district programs like Clean Cars 4 All (CC4A). Started in 2015, CC4A has provided more than $165 million to help 20,000 Californians purchase cleaner vehicles, while removing older polluting vehicles from the state’s roadways. Those older vehicles were scrapped and replaced with cleaner alternatives such as new and used zero-emissions, plug-in hybrid, or hybrid cars. The average vehicle retired through CC4A is about 25 years old with an estimated fuel economy of 22 miles per gallon, while the average replacement vehicle obtained through the program has an equivalent fuel economy of 80 mpg.

Five of the state’s air districts – San Joaquin Valley, South Coast, Bay Area, Sacramento and San Diego – that administer the individual programs under CC4A report that participation in the program has continued to rise despite higher loan interest rates.

Additional counties not being served by a CC4A program will launch DCAP through early 2025.

Not only do these incentive programs help with the initial costs of a cleaner vehicle, but they will also help families reduce gasoline and maintenance costs.

The transportation sector is by far California’s largest source of air pollution and greenhouse gases with the greatest public health impact, especially to disadvantaged communities already disproportionately burdened by poor air quality. DCAP is one of several vehicle-purchase incentive programs that will help Californians make the switch to clean vehicles. Incentives play a pivotal role in supporting the state’s air quality and climate goals and Gov. Gavin Newsom’s order requiring all new car and passenger truck sales in California to be zero emission by 2035. State clean vehicle incentives can often be combined with federal program funding.

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