California Mulls Funding $7,500 EV Incentive Canceled by Trump

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Regulators proposed ideas to expand the use of zero-emission vehicles, in a new report.

California may fund the $7,500 rebate for electric vehicle purchases canceled by President Donald Trump as one idea to keep the state’s zero-emissions market alive.

In June, Gov. Gavin Newsom ordered several state agencies—including the California Air Resources Board (CARB), Energy Commission (CEC), and Department of Consumer Affairs—to recommend ways to expand the use of zero-emission vehicles and continue the state’s momentum to meet its aggressive clean air and climate goals as the federal government rolls back support.

The regulators issued their report on Aug. 19 and compiled a list of ideas for Newsom to consider.

“While [the Trump] administration quits the race [and] draws back federal support, the world races forward—[California] won’t back down from the fight for clean air for all,” CARB stated in a Facebook post on Aug. 19.

The report was developed after public meetings, according to CARB, and details six areas of action, including proposing to replace the federal tax credits and fund point-of-sale rebates, vouchers, or other credits to drive new EV sales.

The federal government offered a $7,500 EV rebate, known as the Clean Vehicle Credit. It was a tax incentive to promote the purchase of new EVs and fuel cell electric vehicles. The credit program ends on Sept. 30.

“Incentives should support new and used vehicle purchases and leases and be available for individual vehicle purchases as well as bulk purchases by fleet operators,” the agencies stated in the report.

The regulators also suggested going after private investment in the zero-emissions vehicle market, boosting EV charging and hydrogen fueling stations, reducing EV charging costs, and directing state agencies to purchase zero-emissions vehicles as they replace their fleets.

Trump canceled the state’s EV mandate and removed federal incentives for electric vehicles in his “Unleashing American Energy” order signed on his first day in office on Jan. 20.

The order also directed the Environmental Protection Agency (EPA) to cancel waivers issued to California and other states that limited sales of gasoline-powered automobiles.

By Jill McLaughlin

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