California Leading the Country in Zero Emissions
Given its status as the epicenter of both tech culture and car culture, it’s probably no surprise that California is the country’s leader in terms of the number of clean vehicles on the road. Over 2 million zero-emissions vehicles (ZEVs) such as electric cars, plug-in hybrids, and hydrogen cars, have been sold in the state – a number reached just two years after California ZEV sales reached the 1 million milestone.
Indeed, in the third quarter of 2024, over 115,000 electric cars were sold in California, representing over 25 percent of all new vehicle sales in the state.
Will California’s leadership in zero-emissions continue after the Trump administration takes over at the beginning of 2025? Likely. But, after the explosive growth of zero-emissions sales, the risk is that growth will slow significantly.
New California EV Rebate
Which is why the state’s governor Gavin Newsom recently announced that, should the Federal government eliminate EV tax credits, California would re-launch the state’s Clean Vehicle Rebate Program, which was phased out in 2023. During its lifetime, the program helped put more than 500,000 electric cars on the road (and saved a claimed 456 million gallons of fuel).
The rebate, which wound down just as the federal rebate of up to $7,500 was being introduced, provides an equivalent dollar figure to qualifying EV buyers. In the case of the proposed new rebate, the dollars would come from California’s Greenhouse Gas Reduction Fund, whose dollars came from polluting entities under the state’s cap-and-trade program.
Further details about the new rebate weren’t forthcoming from California, yet – and are likely contingent upon actions taken by the new federal administration. But it’s clear that California doesn’t want to relinquish either its status as the nation’s leader in zero-emissions vehicles, or the momentum it’s built in electrifying its roads.
How is California Advancing Clean Transportation?
Vehicle sales are just one part of California’s clean transportation roadmap. In addition to supporting the sale of more zero-emissions vehicles, the state is also helping to fund new projects in clean fuel production, public transit, rail infrastructure, and a cleaner electric grid to provide power for all of it.
California is rapidly deploying funds to support the development of a widely-accessible, reliable, and easy-to-use charging network. In 2024 alone, over 150,000 public chargers have been installed throughout the State, in addition to the 500,000 chargers installed in drivers’ homes. 458 DC fast chargers, also known as Level 3 chargers, have been installed along interstates and California highways; a further $81.7 million of investment in Level 3 charging is planned for next year.
In addition to charging infrastructure for personal-use vehicles, California is also working to cut emissions of larger vehicles. $102 million has been spent installing charging stations and hydrogen fueling stations to serve zero-emissions trucks along Interstate 5 and other key corridors, and California has also put 1,000 zero-emissions school buses on the road.
California EV Incentives: What’s Next?
Under Republican President George W. Bush, the first federal EV tax credit was introduced through the U.S. Energy Policy Act of 2005. Over time, different rebates at the federal level have provided thousands of dollars of support for EV consumers, helping make next-generation zero-emissions vehicles more affordable.
The latest federal rebate, brought in by the Biden administration, provides up to $7,500 for qualifying customers on qualifying vehicles – and $7,500 for EVs that are leased. It’s helped fuel significant sales growth for electric cars across the country.
Rumor has it that California will provide a similar level of support for all EVs except for Teslas, which currently dominate the market. But those are only rumors – and only time will tell whether the new President will eliminate the federal rebate, and how the state will respond.
