As California achieves historic milestone, Governor Newsom commits to restarting state’s ZEV rebate program if federal tax credit is eliminated
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Nov 25, 2024

As California achieves historic milestone, Governor Newsom commits to restarting state's ZEV rebate program if federal tax credit is eliminated

What you need to know: California continues to lead the nation in ZEV adoption, surpassing 2 million electric, plug-in hybrid, and hydrogen-powered vehicles sold across the state. Governor Newsom announced California will step in to provide a California ZEV rebate if the incoming Trump Administration follows through on its threat to eliminate the federal tax credit.

SACRAMENTO – California has surpassed 2 million zero-emission vehicles (ZEV) sold, reaffirming California's status as the country's leader in clean vehicles. This milestone comes a little over two years after California eclipsed the 1 million ZEV sales mark.

To ensure the state's continued progress, Governor Gavin Newsom today announced that if the incoming Trump Administration eliminates a federal ZEV tax credit, he will propose creating a new version of the state's successful Clean Vehicle Rebate Program, which was phased out in 2023. During its lifetime, the CVRP funded more than 594,000 vehicles and saved more than 456 million gallons of fuel.

The proposed California rebates, which would include changes to promote innovation and competition in the ZEV market, could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state's cap-and-trade program.

"Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay. We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California. We're not turning back on a clean transportation future — we're going to make it more affordable for people to drive vehicles that don't pollute."

Governor Gavin Newsom

In the third quarter of 2024, Californians purchased 115,897 ZEVs, representing 26.4% of all new vehicle sales in the state. With more electric vehicles (EVs), including plug-in hybrids, on the road every day, consumers are benefitting from the state's work to build a bigger, better and more reliable charging network.

The nation's leader in ZEV vehicles and infrastructure

California's support for clean cars is unmatched. With the rise in EV and plug-in hybrid demand, the state is committed to rapidly deploying funds to develop and ensure an accessible, reliable and easy-to-use charging network. In 2024, the state has doubled down on improving the network:
  • 150,000 public or shared private electric vehicle chargers have been installed throughout California, plus over 500,000 at-home chargers.
  • Awarded over $32 million in federal funds to install, operate and maintain 458 direct-current fast chargers (DCFC) along interstates and highways across the state thanks to the first round of funding President Biden's Infrastructure Investment and Jobs Act. California was recently approved to spend another $81.7 million in federal funding next year.
  • Thousands of dollars in grants and rebates available for low-income Californians. Learn more at ClimateAction.ca.gov or ElectricForAll.org.

The work doesn't stop with electric, hydrogen, and plug-in hybrid vehicles — the state has been hard at work to cut emissions in the freight sector and in school districts. Recent efforts include:
Under President George W. Bush, the first federal EV tax credit was introduced through the U.S. Energy Policy Act of 2005.

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Building a bigger, better charging network

State agencies are working to speed up charger deployment, cut through red tape, establish guidelines, plan for the expected increased grid demand, and efficiently electrify charging stations through local utilities. This includes:
  • Gathering better data on EV charger counts.  
  • Prioritizing shovel-ready projects for both state and federal incentives.
  • Developing the Zero-Emission Vehicle Infrastructure Plan (ZIP), a comprehensive plan that lays out the overall strategy to meet California's ZEV goals.
  • Establishing reliability standards.
  • Updating transportation energy forecasts.

California is spending billions to speed ZEV infrastructure deployment, tear down barriers, and deploy infrastructure in hard-to-reach and low-income areas. 30.3% of new ZEVs sold in the U.S. are sold in California, according to the California Air Resources Board.

California's strategy for a clean transportation transition

This is a major milestone on California's path to a clean transportation future. In addition to advancing ZEVs, the Newsom Administration is prioritizing clean fuel production, public transit and rail infrastructure enhancements, and a cleaner, smarter electric grid to help power it all. As California works toward this clean transportation future, the state is also advancing efforts to prevent gasoline price spikes.

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