State EV Rebates on Hiatus in California (Unless You're Poor)

California wants to fund more generous rebates for electric vehicle buyers as part of a massive agenda to support the adoption of zero-emission vehicles. In addition to federal incentives, the state has its own rebate program and has made plans to add additional state-sponsored tax breaks for EV buyers.

However, according to the Center for Sustainable Energy, California’s Clean Vehicle Rebate program has almost run out of funding — for a second time — after Governor Jerry Brown neglected to include it in the state budget.

As a result, the program can no longer offer rebates to purchasers of zero-emission vehicles and has placed those who made a purchase after June 30th on a refund waiting list. It’s bad news for anyone in California who wanted to by an electric car. Well, unless you’re poor, because the State of California really wants to convince low-income households to buy electric for some reason.

This isn’t the first time California has showed a bias toward low-income individuals in regard to EV purchasing. Earlier this year, the state mandated that Volkswagen reserve a portion of its charging network for disadvantaged neighborhoods — instead of the higher traffic or commercial areas electric vehicles are more likely to occupy.

The state is also considering the California Electric Vehicle Initiative, which would apply additional incentives directly at the time of purchase, rather than forcing taxpayers to wait for a refund. That bill provides $3 billion in state incentives on top of the federal rebates based on manufacturer quotas. If passed, it would also set aside $500 million per year in cap and trade program funds to ensure that disadvantaged communities, schools, transit buses, and freight benefit from the electrification push.

California’s current EV program reimburses shoppers after the purchase of plug-in electric or fuel cell vehicles. Current state-based rebates range between $1,500 and $5,000, depending on the type of vehicle and the income of the buyer — prioritizing higher rebates for lesser incomes.

While there is absolutely nothing wrong with aiding the poor, why California thinks green vehicles are an essential aspect of that endeavor is bewildering. Electric vehicles provide numerous advantages, but affordability is often not among them. Even with government incentives, EVs typically cost more than internal combustion vehicles and possess a lackluster resale value. Frankly, it would be difficult to prescribe one to someone who lives paycheck to paycheck.

There are exceptionally low leases to be had in the Golden State that are far easier to recommend to cash-strapped individuals. But those models are traditionally lower-range EVs that would make for affordable commuter cars and little else. In the end, it’s still easier to tell someone to buy a used Honda CR-V and drive it until the wheels fall off.

Of course, none of this explains why California cares about who is buying zero-emission vehicles in the first place. The state is already leading the country in electric vehicle adoption, but it’s not keeping pace with its proposed goal of 1.5 million electric vehicles by 2025 and 5 million by 2030. With only about 300,000 EVs on California roads today, the state should be broadening its rebate reach — not focusing it on a small subset of the community that hasn’t been buying EVs.

It’s genuinely difficult to unpack the state’s rationale on the matter. While one almost wants to praise California for sticking it to the wealthy in this minuscule manner, it doesn’t seem to be helping the disadvantaged in any meaningful way. Instead, you’re left furrowing your brow in a futile attempt to identify who exactly is getting the best end of the bargain. Automakers? Mother Earth?

According to CarsDirect, the Center for Sustainable Energy said the rebate program will run out of money fairly soon, but it expects the state legislature to make a funding decision by September 15th — the end of its session.

[Image: Nissan]