CA pushes back on Trump cuts, making clean cars more affordable for first-time EV drivers
As the federal government dismantles clean transportation programs, California is pushing back. In addition to support for electric vehicle infrastructure and mass transit, the state is getting drivers directly into clean cars! Starting later this summer, the state will offer instant discounts to first-time buyers of new and used zero-emission vehicles. Once again, California is leading the way towards making climate and pollution solutions accessible and affordable.
California is committed to helping drivers clear the hurdle of getting their first electric vehicle (EV). Although the federal government ended its $7500 rebate on EVs last year, California knows that making EVs more accessible is crucial to the clean energy transition, and provides real, direct savings to drivers. On July 16, Governor Newsom signed SB 168, creating the MyFirstEV program. The program will give first-time EV drivers an instant $3,500 discount on new EVs with a price up to $50,000, and $1,750 off of used EVs with a price up to $25,000. MyFirstEV is a partnership with 13 automakers, who will double the impact of state funds by matching them dollar-for-dollar.
We already know that on the whole, EVs are cheaper to drive: one analysis from Plug In America showed that driving an EV in California saves drivers around $1000 per year in contrast to a comparable gas car–and that was based on costs in March, before gasoline prices spiked from the war in Iran. This year, the cost of buying a used EV is nearing price parity with a used gas car, even without the new program: as of March, there was just a $1,300 gap between the cost of a used EV and a used gas car. Combined with the price savings of charging instead of buying gas, and the new on-the-hood discounts, driving an EV is a major opportunity for Californians to save money and help the environment at the same time
In California, MyFirstEV is only part of the story: the program is one component of a $600 million commitment to clean vehicles, clean air, and transportation emissions mitigation for all Californians. Among other programs, the package includes $19.8 million to help lower-income Californians access clean vehicles through the Clean Cars 4 All program. Lower-income drivers are overrepresented among California’s greatest gasoline users, and for many, gasoline is a major cost burden: drivers in California who fall within the top 10% of US gasoline users and make less than $25,000 annually spend an average of nearly 60% of their income on gas alone. The war in Iran and high price of oil only exacerbates this challenge. Providing targeted support for these drivers to transition to clean cars helps relieve the cost burden of gasoline, improves air quality in overburdened communities, and benefits the climate by displacing as much gasoline as possible, all at the same time.
Every Californian deserves access to clean air and a livable planet. In California, the transportation sector is the largest source of greenhouse gas emissions: it accounts for nearly 40% of emissions in the state. That’s why it’s especially important that we continue making rapid, equitable progress towards displacing gasoline and decarbonizing our transportation systems. While Trump is pushing the federal government backwards on climate, my colleagues and I are determined to continue charging ahead. Programs like MyFirstEV and Clean Cars 4 All accelerate the transition to equitable, affordable, sustainable transportation!