California is making its largest investment ever to expand clean transportation in underserved communities

The state announces $3.6 billion in funding for zero-emission vehicles and chargers, with $2.6 billion from CARB for clean vehicles and mobility options, and CPUC’s $1 billion transportation electrification program

California has committed a historic $10 billion package to accelerate the transition to zero-emission vehicles and fight climate change

SACRAMENTO – Gov. Gavin Newsom today took two important actions to advance the state’s groundbreaking effort to bring cleaner cars, trucks and buses on the road through expanded vehicle purchase incentives and cleaner transportation infrastructure, particularly in underserved areas, to help the transition to make electric vehicles more accessible and affordable than ever before.

The California Air Resources Board (CARB) yesterday approved a $2.6 billion investment plan to support a wide range of ZEV projects, with 70% of the funds going to disadvantaged and low-income communities — the state’s largest investment to date in the equitable expansion of clean transportation. Assistance for low-income consumers includes up to $19,500 for those who need to scrap an older car.

Also yesterday, the California Public Utilities Commission (CPUC) approved a $1 billion electrification program to fund ZEV charging infrastructure with additional incentives for projects in hard-to-reach communities.

“California is leading the world in the zero-emission vehicle revolution while taking steps to ensure those most affected by air pollution share in the benefits,” said Gov. Newsom. “These bold investments to incentivize cost savings and expand access to ZEV charging infrastructure across our communities take us a big step closer to realizing our clean transportation future in California.”

These investments will be funded in part by the historic $10 billion ZEV package proposed by Gov. Newsom and the Legislature as a key component of California’s $54 billion multi-year climate commitment.

CARB’s $2.6 billion investment plan includes funding for a variety of projects and makes key program changes:

  • $2.2 billion for clean trucks and buses and off-road equipment. This includes over $2 billion for zero-emission trucks and buses and off-highway vehicles, including school buses, transit buses and trolleys, $33 million for financing small truck fleets transitioning to cleaner technologies, and $135 million for Demonstration and pilot projects. including commercial port vessels.
  • $381 million for clean transportation equity projects, including $326 million for vehicle purchase incentives and $55 million for clean mobility investments.
  • Support for low-income consumers who want to buy an electric car – Up to $15,000 in incentives for new electric vehicles without having to scrap an older vehicle and up to $19,500 for those who need to scrap an older car – an increase of $3,000 USD versus current stimulus levels.
  • Streamline and Align Programs – Simplified income eligibility levels to 300% or less of the federal poverty line and provides $2,000 prepaid EV charging cards for low-income consumers.
  • Small Fleet Support – Introduces tiered voucher amounts to increase support for small fleets while encouraging early adoption of zero-emission technologies and large-scale deployment of zero-emission trucks in disadvantaged communities.
  • Commercial Harbor Boat Support – Provides $60 million for cleaner commercial harbor boats.

CPUC’s $1 billion transportation electrification program provides a unified, policy-driven funding structure for the utility’s nationwide electrification efforts through 2030 and prioritizes investments in charging infrastructure for low-income, tribal and underserved utility customers. The program will use 70% of the funds to charge medium and heavy-duty vehicles, which are responsible for a disproportionate share of air pollutants from the transport sector, and will offer rebates for customer investments in electric vehicle infrastructure. Higher discounts will be available for projects in underserved, disadvantaged and tribal communities to ensure charging infrastructure reaches these hard-to-reach communities.

Electric vehicles are one of California’s top exports, and the state is home to 43 ZEV-related manufacturers. ZEVs account for 18% of all new vehicles sold in California. Earlier this year, California enacted a world-leading regulation to achieve 100% zero-emission vehicle sales by 2035, a critical component of the state’s master plan — California’s roadmap to reducing hazardous carbon emissions and moving away from fossil fuels.