The Expert Podcast

Episode Show Notes:
  • California’s Aggressive Push for EVs:
    • California is a leader in promoting the use and sale of electric vehicles (EVs).
    • The state offers one of the most generous EV rebate programs in the country, in addition to federal electric vehicle rebates.
    • This initiative has resulted in a 19% increase in zero-emission vehicle sales.
  • Challenges with the Rebate Program:
    • Success in EV sales is causing a problem: the rebate program is running out of funds.
    • California’s rebate program was budgeted for a certain amount, but with rising sales, the allocated money is quickly depleting.
    • The state may have to consider alternatives like increasing the rebate fund, reducing the rebate amounts, or cutting off rebates once the money runs out.
  • Rebate Availability:
    • California’s EV rebate program operates on a first-come, first-serve basis.
    • When the money runs out, those who purchase an EV last may not receive a rebate, leaving some buyers without financial assistance.
  • Rebate Process and Eligibility:
    • The California Air Resources Board provides a guide to apply for rebates.
    • Eligible vehicles include hydrogen fuel cell vehicles and battery electric vehicles from brands like Audi, BMW, Ford, Hyundai, Kia, and Mercedes.
    • Most EVs qualify for a $2,000 rebate, while plug-in vehicles get a $1,000 rebate. Hydrogen fuel cell vehicles receive a higher $4,500 rebate.
  • Impact of Depleted Funds:
    • The biggest question remains: what happens when the rebate funds run out?
    • Will the state allocate more money to the program, or reduce the amount per rebate?
    • Additionally, there are questions surrounding whether the rebates will extend to used electric vehicles or remain for new ones only.
  • California’s Transformation and Future of EVs:
    • Electric vehicles and zero-emission cars are a critical part of California's transition away from gasoline-powered vehicles.
    • The future of the state’s EV rebate program depends on how the government handles this growing demand and the sustainability of the funding.
Listen to this episode to explore California's efforts to promote electric vehicles and how the rebate program is evolving with rising sales.

What is The Expert Podcast?

The Expert Podcast brings you firsthand narratives from experts across diverse industries, including private investigators, general contractors and builders, insurance agencies, vehicle specialists, lawyers, and many others.

The state of California is one of the most aggressive when it comes to promoting the use and sale of electric vehicles. Their EV rebate program is one of the most generous in the country, and this is on top of the federal electric vehicle rebates that are out there. And it’s working, right? The sales of zero-emission vehicles, mostly electric vehicles, are up 19%, which is a pretty big jump. The problem is that success is also creating a problem where their rebate program is running out of money.

In California, they budgeted for a certain amount of rebate money to be paid to consumers to buy electric vehicles, and that money is quickly drying up. Their rebate program doesn’t have enough money in it to pay for the projected sales for years going forward. So, how’s this going to work out? Are they going to put more money in the program? Are they going to reduce the amount? Are they going to cut it off after a certain point? There was a period of time where, when rebate money ran out, after that, you didn’t get a rebate. So, if you're the consumer that bought the last vehicle that qualifies for an EV, the person right behind you who buys an electric vehicle won’t get a rebate. That’s one way of dealing with it.

So, have you received a rebate from the state of California for an electric vehicle? There are certain forms you have to fill out to get that rebate. Here’s how that process works. This is directly from the California Air Resources Board, and this is their document where they report the impact of the clean rebate project. If you scroll down to the first paragraph, the executive summary explains that the program has a rebate process based on a first-come, first-serve basis. So, consumer rebates are given on a first-come, first-serve basis. That’s what it means if they run out of money—people coming in after that won’t get a rebate.

The first thing they have is a list of eligible vehicles. They go through a long list, including hydrogen fuel cell vehicles, and then there’s battery electric vehicles like Audi, BMW, Ford, Hyundai, Kia, Mercedes, and more. Most of these vehicles get a $2,000 rebate. The plug-in vehicles are a little less—they get a $1,000 rebate. Motorcycles get a little less as well, but if you notice at the very top of the page, these zero-emission hydrogen fuel cell vehicles get $4,500. You’re only really going to find that in California, though, because there aren’t really places to refuel these vehicles other than California.

But the big question is, what happens when the money runs out? It’s unknown yet whether they will refund this and put more money in. But electric vehicles and zero-emission vehicles are important to the California transformation away from gasoline vehicles. It’ll be interesting to see whether or not they continue that support with more rebate money, and if they apply the rebate to used electric vehicles as well as new ones.