California Air Resources Board

Effective November 8, 2023, the Clean Vehicle Rebate Project (CVRP) is closed.

Project Goals

The primary goal of CVRP was to support mass deployment of ZEVs to help build a sustainable EV market. This was accomplished by providing consumer rebates to partially offset the higher initial cost of these advanced technologies. Over the years, CVRP appropriately transitioned from a broad market incentive to an income-based incentive to ensure consumers that are not traditionally the first to buy newer technologies have ample support to make the transition. The program continued to see increasing demand from applicants in both middle- and lower-income levels.

Guiding Legislation and Policy Drivers

In 2007, Governor Schwarzenegger signed into law the California Alternative and Renewable Fuel, Vehicle Technology, Clean Air, and Carbon Reduction Act of 2007 (AB 118, Statutes of 2007, Chapter 750). AB 118 created the Air Quality Improvement Program (AQIP), a voluntary incentive program administered by the California Air Resources Board (CARB or Board), to fund clean vehicle and equipment projects, air quality research, and workforce training.

In 2014, SB 1275 (De León, Chapter 530, Statutes of 2014) established the Charge Ahead California Initiative. SB 1275 directs CARB to make a number of changes to CVRP including limiting consumer eligibility based on income and considering incorporating pre-qualification and point-of-sale mechanisms in CVRP. The Board approved an income cap and higher CVRP rebate amounts for lower-income consumers as part of the Fiscal Year (FY) 2015-16 Funding Plan. These changes went into effect in spring 2016.

In 2016, the Legislature passed SB 859 (Committee on Budget and Fiscal Review, Chapter 368, Statutes of 2015), which mandated a number of changes to CVRP, including:

• Increasing rebate amounts for low-income applicants with household incomes less than or equal to 300 percent of the federal poverty level.
• Set the income cap.
• Limiting PHEV eligibility to vehicles with at least 20 miles of electric range.
• Requiring outreach to low-income consumers.
• Requiring prioritized rebate payments for low-income consumers.

SB 615 (Cooper, Chapter 631, Statutes of 2017) extended these provisions through December 31, 2018. In addition, AB 2885 (Rodriguez, Chapter 366, Statutes of 2018) extended the requirements for CARB to continue providing outreach to low-income households and low-income communities and prioritize rebate payments to low-income applicants until January 1, 2022.

Though these legislative requirements were scheduled to sunset, staff maintained the following provisions:

• Limit participant eligibility based on income.
• Provide rebates for applicants who report gross annual income.
• Provide increased rebates to eligible low-income applicants

Project Funding and Allocations History

Table: Allocated dollars since the project launched in FY 2009-10

Table: Funding breakdown among administrative costs, outreach costs, and incentives (rebates)

Project Reports

• CVRP Final Report 2014-2015
• CVRP Final Report 2013-2014
• CVRP Final Report 2012-2013