California Center for Sustainable Energy

California Energy Commission Extends Clean Vehicle Rebates in California

Today the California Energy Commission ( CEC) and the Air Resources Board ( ARB) officially finalized an agreement that will make many EV early adopters in California smile. To read the press release, click here. The interagency agreement puts an extra $2 million dollars in the Clean Vehicle Rebate Project (CVRP). While the CVRP is open to a range of electric, plug-in hybrid electric and fuel cell vehicles, this extra boost in funding from the CEC is reserved for highway capable vehicles that can carry four or more passengers.  So this essentially is open to three eligible vehicles in the program, the Nissan LEAF, Honda Clarity and the Azure Connect Transit Connect. This extra funding is not the only thing worth noting...

ARB Heavily Investing in EVs in 2012

I know that some readers will not too pleased with the conditions associated with the additional CEC funds, but I do have some good news. In 2012 the CVRP will be getting a significant boost in project funding. ARB will finalize the exact number in July; however staff has recommended an allocation between $12 and $17 million dollars, which roughly translates to rebates for up to 6000 vehicles.  Last year ARB dedicated $5 million dollars to the program, which means next year we will have three times the amount of funding for the electric and plug-in hybrid electric vehicle rebates in California.  But, the three-fold increase in funding for the CVRP is not the only thing changing in 2012.

Changes in the Rebate Amount

In an effort to provide more rebates for more consumers, ARB is increasing the available funding and reducing the rebate amounts for 2012.  Once 2011 program funds are exhausted (including additional funds from the CEC) rebate amounts will be restructured according to the schedule in the table below.

What Happens When CVRP Funding for 2011 Runs Out?

Both  CCSE and the Air Resources Board understand that the  CVRP rebate is a major factor in many California residents and businesses decision to purchase a plug-in electric vehicle ( PEV).  While close to 2000 PEVs will be rebated in the first two years of the program, this just scratches the surface of demand in California.  As a result the  CVRP may be oversubscribed before next year's (FY 2011-2012) funds are allocated sometime in September.

If the program does run out of money before these funds are allocated,  CCSE will generate a waiting list for residents and businesses who apply to the  CVRP. Waiting list applicants will receive a rebate based on two factors, their position on the list and the approval of new funding. It is important to note that rebates will be issued to waiting list applicants before new individuals who apply. However there is one caveat. Individuals on this waiting list will be subject to 2011-2012  CVRP guidelines. This means, if you are on the waiting list you will be getting the restructured rebate amount, reflected in the table above.

While rebate amounts will be lower next year, please keep in mind that the Air Resources Board and CCSE are working to adapt the CVRP to accommodate more consumers as the number of available vehicles expands.   With more rebates to go around, we are helping to reduce our consumption of petroleum and provide cleaner air for all Californians... Not such a bad thing when you think about it.