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California Unveils Plan to Backstop EV Push After Federal Rollbacks

No price tag or funding source has been set for the proposed incentives.

Drivers charge their Teslas in Fountain Valley, CA, on Wednesday, March 20, 2024. The Biden administration on Wednesday, March 20, 2024, issued one of the most significant climate regulations in the nation’s history, a rule designed to ensure that the majority of new passenger cars and light trucks sold in the United States are all-electric or hybrids by 2032.  (Photo by Jeff Gritchen, Orange County Register/SCNG)
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Overview

  • An eight-page multi-agency report recommends replacing the expiring $7,500 federal EV credit with state point-of-sale rebates or vouchers, potentially including used vehicles and fleet purchases, subject to available resources.
  • Officials propose sustaining the Low Carbon Fuel Standard, accelerating charging and hydrogen infrastructure, exploring utility bill credits for home charging, restoring solo carpool-lane access for ZEVs, and expanding state and local ZEV procurement.
  • CARB has begun work on a new Advanced Clean Cars III rule, with officials cautioning that drafting and adoption typically require two to four years.
  • The recommendations follow Trump’s signed measures revoking EPA waivers that enabled California’s stricter auto rules, while California and other states have sued to restore that authority.
  • Tensions with industry have escalated as truck makers sued over clean-truck rules, the FTC deemed the Clean Truck Partnership unenforceable, and the DOJ signaled legal action, even as EV sales growth in California has cooled and key federal incentives and HOV privileges expire Sept. 30.