CA utilities and CARB offer extra premiums for EVs

To increase the uptake of zero- and low-emission vehicles on Californian roads, California electric utilities are teaming up with the California Air Resources Board (CARB) to offer up to $1,500 for purchase or lease of electric vehicles. The offer began on the 17 November.

++ This article has been updated. Kindly continue reading below. ++

The scheme, called the California Clean Fuel Reward (CCFR), is a point-of-sale price reduction. Those looking to purchase or lease any eligible new battery electric or plug-in hybrid vehicle from a participating automotive retailer are eligible for up to $1,500 deduction on the purchase price.

The scheme is designed to be user-friendly for consumers. No paperwork is necessary, the dealer simply includes the transaction at the point of sale. The Californian government says that the scheme is open to everyone, and runs lists of  enrolled retailers and eligible vehicles that they say will be continually updated as more electric vehicles come onto the market.

“The goal of the program is to accelerate the number of electric vehicles on California’s roads and highways,” said CARB Vice-Chair Sandy Berg. “The instant point-of-sale price reduction of up to $1,500, along with other programs like Clean Cars 4 All, will help make these ultra-clean cars more affordable, especially for low-income families or those living in disadvantaged communities.”

The scheme is aimed at supporting several initiatives brought in by the government of Governor Newsome’s executive order to ban the sale of new fossil-fuelled cars and trucks starting 2035 and at an increasing percentage up to that point. The Californian government assures consumers that this new incentive, the CCFR, will not exclude drivers from other schemes such as the Clean Vehicle Rebate Project, Clean Cars 4 All, and the Clean Vehicle Assistance Program, which can be applied in combination.

The new purchase subsidy is funded by electric utilities engaged in CARB’s Low Carbon Fuel Standard (LCFS) program and will be administered by Southern California Edison.

Update 22 October 2021

According to the California Clean Fuel Reward’s official website, the maximum discount available on plug-in hybrids and EVs will be halved from $1,500 to $750 on November 2nd. The California Clean Fuel Reward launched in late November of 2020. To be precise, “The $1,500 maximum reward amount is for vehicle sales completed by 11/1/21; beginning 11/2/21 the maximum reward will be $750”.

The new regulation affects all vehicles delivered after November 1st, meaning this is essentially already in business, as due to the ongoing chip shortage, many manufacturers are sold out for the coming month. Tesla even went so far as to drop any mention of the $1,500 on their website, now referring to the $750 subsidy, as the company’s customer backlog reaches as far as next year.

It’s also important to note that the Clean Fuel Reward is calculated based on battery capacity. This will mainly affect shorter-range plug-in hybrid vehicles, as intended. That also means it is important to note the battery capacity rather than the range when making purchase decisions.

ww2.arb.ca.gov, carsdirect.com, cleanfuelreward.com (both update)