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California Unveils Plan to Sustain ZEV Push After Federal Rollbacks

The proposal prioritizes replacing the expiring federal EV credit with point-of-sale rebates.

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

  • CARB and five state agencies released an eight-page pathway recommending rebates or vouchers to backfill federal EV tax credits set to end on Sept. 30.
  • The report calls for sustaining the Low Carbon Fuel Standard to draw private capital and for faster buildout of charging and hydrogen refueling networks.
  • State regulators have begun work on Advanced Clean Cars III, with CARB noting ZEV adoption is currently outpacing compliance obligations under existing rules.
  • The document includes no cost estimates, prompting warnings from critics that replacing federal incentives could cost billions during tight state budgets.
  • The plan lands as California litigates federal nullification of its emissions waivers and as DOJ and FTC actions target state truck-emissions arrangements.