The Alliance of Automobile Manufacturers and the Association of Global Automakers backed a funding plan on Monday that would allocate $165 million to California’s Clean Vehicle Rebate Project (CVRP) in the upcoming fiscal year.
The industry groups wrote in a letter to the California Air Resources Board that the proposed funding allotment should be sufficient, but they encouraged discretion to establish a waitlist if funding is exhausted before the fiscal year ends.
The Alliance of Automobile Manufacturers and the Association of Global Automakers noted that California’s commitment to the CVRP has helped position the state as a leader in zero emissions vehicle (ZEV) technology. California currently records the highest combined sales of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) in the country.
“This is the result of a combination of compelling products, financial incentives at the state and local level, carpool lane access, free or reduced parking, significant infrastructure, high population centers, an ideal climate, significant education and outreach, and highly engaged stakeholders,” the letter stated. “California’s commitment to ZEV technology at every level is unmatched, and we sincerely appreciate the leadership of ARB in developing this comprehensive program to support ZEV technology.”
However, the groups noted that automakers face the “enormous challenge” of more than doubling ZEV sales to build a sustainable market that doesn’t hinge on large incentives from automakers or governments. Currently, ZEV sales account for approximately 4.5 percent of new vehicle sales in California, and consumer awareness about ZEV technology remains low.
The industry groups also voiced support for point-of-sale rebates to pre-qualified buyers, noting that CVRP has established a “straightforward and quick” process for customers to apply for and receive rebates.