California launches $1B in point-of-sale rebates for electric trucks

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The California Air Resources Board (CARB) has opened retailer enrollment for a new statewide incentive program that will offer point-of-sale rebates on electric medium- and heavy-duty trucks beginning June 26.

Funded through California’s Low Carbon Fuel Standard (LCFS), the California Clean Fuel Reward program is expected to provide $250 million in rebates this year, with more than $1 billion in funding projected through 2030.

Santa-Fe Spring charging facility
Prologis charging facility in Santa Fe, Calif. (Photo: Prologis)

The rebates, ranging from $7,500 to $120,000, will apply to new electric commercial vehicles including drayage trucks, electric semis, box trucks, delivery vans and other fleet vehicles. Public fleets will also be eligible for incentives on smaller Class 2b pickup trucks used for business purposes.

“This new rebate program builds on California’s long record of incentivizing zero-emission vehicle deployment and reaffirms our unwavering commitment to clean transportation,” said Lauren Sanchez, chairwoman of the California Air Resources Board. “By returning revenue from the Low Carbon Fuel Standard directly to truck buyers at time of purchase, we’re making zero-emission trucks the better choice for fleets and delivering cleaner air along freight corridors where it’s needed most.”

The program will be administered by Southern California Edison on behalf of CARB and several California utilities, including Pacific Gas & Electric, San Diego Gas & Electric, the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District. Fleets across the state will be eligible regardless of utility territory.

“As the largest utility-led incentive program of its kind for medium- and heavy-duty vehicles, the California Clean Fuel Reward represents a historic step forward in fleet electrification,” said Funmi Williamson, senior vice president and chief customer officer for Southern California Edison. “By lowering upfront costs, it helps accelerate access to innovative vehicle technologies and supports long-term market transformation.”

CARB said the program is designed to help reduce emissions near ports and freight hubs, where heavy-duty vehicles are a major source of local air pollution.

The incentive program builds on California’s existing clean transportation funding efforts, including the state’s Clean Truck and Bus Voucher Incentive Project (HVIP), which CARB said has provided more than $1 billion in funding to support the deployment of 11,600 clean vehicles across more than 2,000 fleets.

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