California: New EV Incentives for Low-Income Buyers Could Help Replace ‘Clunkers,’ Improve Air Quality

Residents of California now have access to up to $14,000 in new incentives for electric vehicle purchases and charging access, perks that could help more people afford to swap older, higher tailpipe emissions vehicles for much cleaner options.

The California Air Resources Board is rolling out a new Driving Clean Assistance Program that offers incentives for eligible applicants who are chosen for the program. Participants will need to be approved before making their EV purchase in order to receive the benefits, as the California Air Resources Board noted this program does not apply retroactively to previous EV purchases.

As CleanTechnica noted, the Driving Clean Assistance Program has is similar to the Car Allowance Rebate System (CARS), also known as “Cash for Clunkers.” The former federal CARS program, which expired in 2009, was established to encourage people to trade in older vehicles that produced more emissions in exchange for discounts on newer, more efficient vehicles. A 2010 study from the University of Michigan had found that the CARS program was effective at preventing 4.4 million metric tons of carbon emissions.

California’s new Driving Clean Assistance Program offers up to $14,000 for low-income residents toward the purchase of new or used EVs and hybrids while providing bigger cost incentives for those who trade in older vehicles for scrap. The program also provides funding for EV charging to make the transition more accessible.

For residents who trade in their old, high-emissions vehicle for scrap, the program offers up to $12,000 for grants toward lower-emissions alternatives, plus $2,000 for either EV charging credits on a prepaid card or toward the cost installing charging infrastructure for participants with Disadvantaged Community (DAC) status. Those participants without this status are eligible for up to $10,000 in vehicle purchase grants for EVs and other cleaner vehicles, plus the $2,000 to go toward charging credits or charging infrastructure installation. 

For participants without a vehicle to scrap, they can receive up to $7,500 toward the EV purchase and $2,000 in funding for charging. In addition, the program establishes an 8% annual percentage rate (APR) cap on interest for participants that need loans to purchase their EVs.

Both new and used EV purchases are eligible for the grants. However, there are some further rules on the types of vehicles available to purchase via the program. New or used vehicles can’t exceed $45,000 in purchase price, and used models have to be younger than 8 years with under 80,000 miles. 

As The Drive reported, the Driving Clean Assistance Program only specifies that a vehicle purchased through the program needs to be a “cleaner vehicle,” meaning hybrid vehicles could also qualify for the incentives. Participants can consult the California Air Resources Board’s list of approved vehicles to determine which vehicle purchases are eligible for the program.

The program gives priority to low-income households and requires applicants to have a household income at or below 300% of the Federal Poverty Level, which means applicants should have an household income of $93,600 for a four-person family. It is free for eligible applicants to apply for the program.

“A tiered incentive structure provides maximum incentives to the lowest income participants purchasing or leasing the cleanest technology vehicles that reside within and near priority populations,” the board said in the program fact sheet. “This reduces health risks and transportation costs, and provides greater, more reliable mobility and increased access to clean transportation to priority populations.”

As CleanTechnica reported, around one-third of all electric car sales in the U.S. come from California. The state’s ongoing initiatives to promote EVs, including the new Driving Clean Assistance Program, could help further improve the state’s air quality and allow the state to continue leading the charge in transitioning to cleaner vehicles by taking more heavy polluters off the roads.