Source: Center for Sustainable Energy; California Air Resource Board Clean Vehicle Rebate Project
Note: Data last updated May 2023.
Analysis by Beacon Economics
Highlights
- In 2022, the number of clean vehicle rebates claimed was down considerably by 22.7 percent due to lower registrations, while the share of equity groups—people living in disadvantaged communities (as defined by CalEnviroScreen 3.0)92 and low-income communities (as defined by Assembly Bill 1550)93 –who have taken advantage of the rebate has been steadily increasing over the last few years. In 2022, approximately 32.1 percent of rebates came from either of these groups—the highest share on record—up from 29.2 percent in 2021, and almost twice as much as in 2015 (17.8 percent).
- The decline in the California Clean Vehicle Rebate Project (CVRP) in 2022 can be attributed to a 33.1 percent decrease in Tesla's rebate applications compared to the previous year. Although the exclusion started on March 15, 2022, Tesla still accounted for half of the rebates claimed in the same year. The increased income eligibility and limited budget allocated for incentives94 given strong demand may have also played a role in the decline. However, effective on November 8, 2023, CVRP is closed to new applications.95 The California Air Resource Board’s drive clean program has other available incentives.
92 The CalEnviroScreen3.0 can be view here: https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30
93 The Assembly Bill 1550 can be view here: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB1550
94 California Air Resources Board. In response to strong demand for electric vehicles, the California Air Resources Board expects rebate funds for the statewide Clean Vehicle Rebate Project (CVRP) to be exhausted within 30 days. April 14, 2021. https://ww2.arb.ca.gov/news/california-electric-vehicle-rebate-demand-exceeds-clean-vehicle-rebate-project-funding
95 California Clean Vehicle Rebate Projects. Available at: https://cleanvehiclerebate.org/en/eligible-vehicles
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