California Air Resources Board

SACRAMENTO - The Air Resources Board announced today rebates for Californians purchasing zero-emission vehicles through the Clean Vehicle Rebate Project may run out by July due to high consumer demand. 

This rebate program may be approved for additional funds at ARB’s July board hearing and upon passage of the state budget with funds for rebates becoming available in the fall timeframe.  Should funds run out before new funding is available, applicants will be placed on a waiting list for funding.  

"California drivers responded even more enthusiastically than predicted to the advanced technology vehicles the car manufacturers are currently offering," said ARB Chairman Mary D. Nichols. “This is a wonderful problem to have, since it means the air will be getting cleaner and less gasoline will be burned." 

In response to overwhelming consumer demand and to increase the number of rebates available, ARB is proposing to triple the funding allocation for the rebate program next fiscal year to between $12 million and $17 million, and reduce the rebate amount by half -- from $5,000 to $2,500 -- in order to meet increasing demand.  The additional funding is projected to allow for approximately 6,000 rebates -- four times the number funded this year.  However, even with the anticipated increased number of rebates available, this funding is limited and may not be sufficient to meet consumer demand next year, so consumers are encouraged to apply early.

Launched in March 2010, vehicle rebates are offered on a first-come, first-served basis for passenger cars, zero-emission motorcycles and neighborhood electric vehicles.  Currently, rebates range from $1,500 to $5,000, depending on vehicle type.  ARB’s $9.1 million project was recently increased by $2 million by the California Energy Commission to fund an additional 400 vehicles.  About 1,400 rebates have been issued to date.  

Information on the rebate project, including an application and required documents, list of eligible vehicles, and real-time funding status is available at: https://energycenter.org/index.php/incentive-programs/clean-vehicle-rebate-project.    

The vehicle rebate project is one of several consumer incentives funded under the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (AB 118). This law allows funding of up to $40 million per year, depending on revenues, through 2015 for ARB to fund advanced technologies needed to meet longer-term air quality and climate change goals.  The state’s early investment in zero-emission and plug-in hybrid technologies will prime the market for the larger number of these vehicles needed over the next decade and beyond.