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California ARB adds another $6M to Clean Vehicle Rebate Program

The California Air Resources Board (ARB) has put an additional $6 million into the state’s Clean Vehicle Rebate Project. Along with another infusion of $4.5 million from the California Energy Commission (CEC) two weeks ago (earlier post), the combined $10.5 million is expected to extend the rebate program until next year’s funds are available.

Under the rebate program, individuals, nonprofits, government entities and businesses can get up to a $2,500 state rebate. This can be combined with an up to $7,500 clean vehicle federal tax credit and various other regional incentives.

To date, ARB has issued more than $42 million and is closing in on the 20,000th rebate offered through its Clean Vehicle Rebate Project. Between 1,500 and 2,000 clean car rebates are now issued each month, placing California at the forefront of the nation in terms of ultra-clean car sales. Even though California is only 10% of the total US car market, it now accounts for about 40% of all purchases of plug-in electric vehicles nationwide.

The Clean Vehicle Rebate Project is made possible by the 2007 law known as Assembly Bill 118. The bill, designed to spur development and deployment of alternative and renewable fuels and advanced transportation technologies, will end in 2015.

It is currently being considered by the Legislature for reauthorization to allow the successful rebate program, and other clean fuel and clean vehicle programs, to continue. AB 118 programs are funded through motor vehicle and vessel fees.

The Clean Vehicle Rebate Project is funded by the Air Resources Board and administered statewide by the California Center for Sustainable Energy.

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