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2016-04-20 02:12:59 UTC
After handing out close to $300 million in rebates for
purchasers of low- and zero-emission vehicles, state regulators
spotted a nettlesome trend -- much of the money ended up in the
pockets of upper middle class and wealthy homeowners.
Did the state really need to subsidize owners of gleaming new
Volts and Teslas and BMW i3s?
"If somebody is going to buy a top-line Tesla," said Dave
Clegern, spokesman for the California Air Resources Board, "they
may not need the help."
Late last month, new rules capped income levels for the Clean
Vehicle Rebate Project, or CVRP. The program offers a range of
rebates, including $1,500 for hybrid vehicles, $2,500 for
electric cars and $5,000 for hydrogen cars. The program also
took steps to encourage more low and moderate income families to
join the clean vehicle fleet.
The rules took effect March 29 and eliminate rebates for
consumers with annual incomes above $250,000 for single
taxpayers and $500,000 for joint filing families. Low- and
moderate-income buyers, defined as making less than three times
the federal poverty level or $72,900 for a family of four, are
eligible for an additional $1,500 rebate toward the purchase of
a new low or zero emission vehicle.
Clean vehicle purchasers are also eligible for federal tax
credits, which can lower the cost of a new vehicle by as much as
$7,500.
The state established the rebate project in 2010 to encourage
clean vehicle ownership, with a goal of having 1.5 million zero-
emission vehicles on California roads by 2025. The program is
funded by bonds and proceeds from the cap-and-trade program,
Clegern said.
Last year, a study commissioned by the Air Resources Board found
that the typical rebate went to a college-educated, white male
who owned a home and had an annual income of between $50,000 and
$200,000.
Just 6 percent of the rebate dollars went to residents in poor
communities, according to the report. The state failed to reach
its modest, 10 percent goal to reach neighborhoods defined as
disadvantaged communities.
Clegern said the changes were designed to better distribute the
rebate money. "It's still reasonably generous," he said. "Our
goal is still to get these vehicles on the road."
The debate continues among clean vehicle advocates on how to
encourage growth in the industry.
Eileen Tutt, executive director of the California Electric
Transportation Coalition, said the rebate program has been
"incredibly effective." The nonprofit encourages growing the
fleet of electric vehicles.
The organization opposed the caps, believing it could discourage
prospective buyers who did not want to share personal income
information with the state, Tutt said. CalETC felt it was too
early for restrictions that made it harder to qualify for the
rebates, she said. But she hopes the additional rebate for lower-
income families will expand the market.
Tutt said two pilot programs -- in San Joaquin Valley and
Southern California -- encourage clean transportation by
allowing moderate-income residents to combine rebates to put
toward the purchase of a used, low-emission vehicle. "It's
important to try it," she said.
The fast-growing clean transportation sector, which includes
hybrid, electric and natural gas vehicles, added 7,000 new jobs
in California last year, a 65 percent increase over the previous
year, according to a study by industry group Advanced Energy
Economy.
More than half of the people employed in the sector work on
electric and hybrid vehicles. The industry got another boost
this month from Palo Alto-based Tesla Motors, which booked more
than 300,000 reservations for its lower-priced sedan in a week.
Steve Chadima, senior vice president for external affairs at
Advanced Energy Economy, said the rebate program has encouraged
clean vehicle purchases, much like the subsidies that helped
build the market for solar panels a decade ago.
The price of electric vehicles will decline as more are
produced, he said. "Is the program working?" Chadima asked. "The
answer is mostly, 'yes.' "
Contact Louis Hansen 408-920-5043. Follow him at
Twitter.com/HansenLouis.
CALIFORNIA CLEAN VEHICLE REBATE PROJECT
The top five brands and the percentage of rebates from 2010 -
2015:
Chevrolet: 21 percent
Nissan: 20 percent
Tesla: 15 percent
Toyota: 14 percent
Ford: 12 percent
Source: Center for Sustainable Energy
http://www.mercurynews.com/business/ci_29773932/new-state-rules-
low-emission-vehicle-rebates?source=most_viewed
purchasers of low- and zero-emission vehicles, state regulators
spotted a nettlesome trend -- much of the money ended up in the
pockets of upper middle class and wealthy homeowners.
Did the state really need to subsidize owners of gleaming new
Volts and Teslas and BMW i3s?
"If somebody is going to buy a top-line Tesla," said Dave
Clegern, spokesman for the California Air Resources Board, "they
may not need the help."
Late last month, new rules capped income levels for the Clean
Vehicle Rebate Project, or CVRP. The program offers a range of
rebates, including $1,500 for hybrid vehicles, $2,500 for
electric cars and $5,000 for hydrogen cars. The program also
took steps to encourage more low and moderate income families to
join the clean vehicle fleet.
The rules took effect March 29 and eliminate rebates for
consumers with annual incomes above $250,000 for single
taxpayers and $500,000 for joint filing families. Low- and
moderate-income buyers, defined as making less than three times
the federal poverty level or $72,900 for a family of four, are
eligible for an additional $1,500 rebate toward the purchase of
a new low or zero emission vehicle.
Clean vehicle purchasers are also eligible for federal tax
credits, which can lower the cost of a new vehicle by as much as
$7,500.
The state established the rebate project in 2010 to encourage
clean vehicle ownership, with a goal of having 1.5 million zero-
emission vehicles on California roads by 2025. The program is
funded by bonds and proceeds from the cap-and-trade program,
Clegern said.
Last year, a study commissioned by the Air Resources Board found
that the typical rebate went to a college-educated, white male
who owned a home and had an annual income of between $50,000 and
$200,000.
Just 6 percent of the rebate dollars went to residents in poor
communities, according to the report. The state failed to reach
its modest, 10 percent goal to reach neighborhoods defined as
disadvantaged communities.
Clegern said the changes were designed to better distribute the
rebate money. "It's still reasonably generous," he said. "Our
goal is still to get these vehicles on the road."
The debate continues among clean vehicle advocates on how to
encourage growth in the industry.
Eileen Tutt, executive director of the California Electric
Transportation Coalition, said the rebate program has been
"incredibly effective." The nonprofit encourages growing the
fleet of electric vehicles.
The organization opposed the caps, believing it could discourage
prospective buyers who did not want to share personal income
information with the state, Tutt said. CalETC felt it was too
early for restrictions that made it harder to qualify for the
rebates, she said. But she hopes the additional rebate for lower-
income families will expand the market.
Tutt said two pilot programs -- in San Joaquin Valley and
Southern California -- encourage clean transportation by
allowing moderate-income residents to combine rebates to put
toward the purchase of a used, low-emission vehicle. "It's
important to try it," she said.
The fast-growing clean transportation sector, which includes
hybrid, electric and natural gas vehicles, added 7,000 new jobs
in California last year, a 65 percent increase over the previous
year, according to a study by industry group Advanced Energy
Economy.
More than half of the people employed in the sector work on
electric and hybrid vehicles. The industry got another boost
this month from Palo Alto-based Tesla Motors, which booked more
than 300,000 reservations for its lower-priced sedan in a week.
Steve Chadima, senior vice president for external affairs at
Advanced Energy Economy, said the rebate program has encouraged
clean vehicle purchases, much like the subsidies that helped
build the market for solar panels a decade ago.
The price of electric vehicles will decline as more are
produced, he said. "Is the program working?" Chadima asked. "The
answer is mostly, 'yes.' "
Contact Louis Hansen 408-920-5043. Follow him at
Twitter.com/HansenLouis.
CALIFORNIA CLEAN VEHICLE REBATE PROJECT
The top five brands and the percentage of rebates from 2010 -
2015:
Chevrolet: 21 percent
Nissan: 20 percent
Tesla: 15 percent
Toyota: 14 percent
Ford: 12 percent
Source: Center for Sustainable Energy
http://www.mercurynews.com/business/ci_29773932/new-state-rules-
low-emission-vehicle-rebates?source=most_viewed