California’s EV Rebate Is Kaput (For Now)

California’s electric vehicle rebate program has had its cash-flow cut off, for the time being anyways, according to recent reports from EV buyers.


The Golden State’s new budget, still awaiting Governor Jerry Brown’s signature, was approved Wednesday and includes nothing for the state’s many vehicle subsidies (for electric vehicles, “environmentally friendly” heavy trucks, etc). Seemingly, this spells the end of the state’s electric vehicle (EV) rebate — at least until some kind of deal or workaround is put together.

For the time being, the state’s clean-vehicle program is simply putting those interested in rebates onto a waiting list.

So, what’s the reason for dropping of the rebate, and the other incentives as well? Wasn’t the plan that Governor Brown revealed back in January supposed to see $500 million spent on low-carbon transportation programs over the next year (including $230 million to be spent on the low-emission vehicle rebate program for consumers, and a further $30 million to be spent on electric vehicle incentives for low-income residents in the San Joaquin Valley and Los Angeles)?

Apparently, the issue is that the revenue expected from the most recent cap-and-trade auction in the state didn’t come through. The auction saw “significantly lower than expected” revenue, going by comments made recently by a Brown administration finance official to a legislative budget committee.


The Los Angeles Times provides some background:

Unlike most budget cuts, the decision to slash funding isn’t due to a lack of money. California’s greenhouse gas reduction fund gets its cash from auctions that are part of the cap-and-trade program, which requires businesses like oil refineries and manufacturers to buy permits based on how much they pollute.

Although the latest auction of permits produced almost no revenue, the state had previously stockpiled $1.4 billion in the fund. Some of that cash is left over from last year, when the governor and lawmakers were unable to reach an agreement on how to spend it.

Environmental advocates are growing increasingly frustrated that the dollars aren’t hitting the streets. Some believe the governor is holding onto the money as an incentive for lawmakers to reach a deal this summer on extending the life of the cap-and-trade program, which is facing legal questions over whether it can keep operating past 2020.

…A Brown administration spokeswoman didn’t directly address questions about the use of existing climate change dollars as leverage to extend the program. But the governor does want a new law to ensure the program’s future and he endorsed an extension through new legislation.

“An extension will not only provide market certainty, but will ensure ongoing funding for clean-energy programs, especially in vulnerable communities,” is what Brown spokeswoman Deborah Hoffman told The Los Angeles Times.

Senate leader Kevin de León (D-Los Angeles) was recently quoted as publicly stating that the funds that are available should be spent as soon as possible: “Every time we don’t spend money, more carbon is emitted into the atmosphere.”

We’ll keep you posted as updates become available.

(Tip of the hat to “smilepak” on the Tesla Motors Club forum for the news.)

Image by for EV Obsession & CleanTechnica.

3 thoughts on “California’s EV Rebate Is Kaput (For Now)





    Price for a Full Size or a Midsize SUV $ 24 to 26K. Peoples Car. Plus options


    PS: There is No such a thing as a Plug-In Electric Vehicle with Zero Emission. Not Now or Ever in the Future.

    There is No such a thing as a “Electric Vehicle Wireless Power/Charging System”

    It should be called Aboveground or Inground Electric Charging System Without Plug-In.

    Click on my name to see my Webpage

    To Mr. Bernard Soriano

    Deputy Director in California Dep. E-Vehicles

    Re: Self Driving Vehicles

    These types of vehicles will never work and will not be possibly function on the normal city/any streets. They show a vehicle driving on a parking lot, and on a sunny day. Nobody is mentioning these types of problems.

    Let’s say the vehicle is driving on city streets the traffic lights are not working, heavy rain day or night, heavy snow that covers the whole vehicle and electronics, overnight parking and the vehicle is covered with ice and snow, mud, than the vehicles outside electronics have no way of knowing what to do. Does the vehicle will not function and is totally useless.

    Everybody who likes to drive a vehicle must have a driver’s license in all states where the person lives.

    Must have vehicle insurance.

    If a vehicle company wants to sell a self driving vehicle the company must supply the vehicle insurance at the time of the sale to the consumer’s.

    The vehicle company must apply and have a driver’s license for every state in the USA.

    Why all this?

    As of today the owner of a vehicle does not need a driver’s license only insurance.

    Once the vehicle company is electronically driving the vehicle from where ever, all liabilities are with the vehicle manufacturer. I very strongly believe the vehicle companies will and cannot do this.

    Please see all my additional documents enclosed in this envelope.


  2. I am hoping to get the Chevy Bolt at $27,500 by the end of this year! This news would put a damper on the sales of electric cars aside from Tesla starting next month! 🙁 🙁

    1. Where? (Do you buy a Bolt?) Even the dealers I’ve talked with don’t know, I was told “Next year sometime” (meaning 2017)
      Not to mention they don’t know what cars they sell. Right now they have 2016 Spark EVs, they don’t know that car is finished and being replaced, if you talk to most sales people. And check to see if they’ve a battery cooling system. Our Spark just dropped 20% of it’s range because of the heat. AC not counted.

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