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Subcommittee reviews ZEV spending package; lawmakers press to preserve truck and equity incentives
Summary
CARB and department staff outlined the governor’s zero‑emission vehicle (ZEV) spending proposal and updates on programs including HVIP, Clean Cars for All, emerging opportunities, and e‑bikes. Members and stakeholders urged protecting and expanding incentive funding for medium‑ and heavy‑duty trucks, clean‑car replacements in disadvantaged areas,
The Assembly Budget Subcommittee No. 4 reviewed the governor’s updated ZEV spending package and heard agency updates on incentive and infrastructure programs.
Michelle Buffington and other CARB staff reported that the original ZEV packages began with roughly $10 billion in commitments; after subsequent adjustments the governor’s budget shows $8.7 billion available for the program series. CARB reported 96% of funds appropriated in the first four years of the ZEV package have been encumbered and are being developed into projects.
For fiscal 2025, CARB proposed $250 million in ZEV investments allocated to several initiatives: $100 million for sustainable community‑based transportation equity projects (local, community‑driven clean mobility projects and planning), $48 million for zero‑emission drayage trucks to support port and goods movement transitions, $47 million for ‘‘emerging opportunities’’ (demonstrations and pilots for medium‑ and heavy‑duty and off‑road ZEVs), and $20 million to maximize emissions reductions from commercial harbor craft subject to CARB regulation. CARB estimated the FY25 allocation would support roughly 1,300 zero‑emission vehicles and equipment in community projects and approximately 2,800 zero‑emission drayage trucks in the drayage allocation.
Members expressed particular concern that existing incentive programs face funding shortfalls. Several air districts reported that their locally run Clean Cars for All programs have exhausted funds; CARB said statewide Clean Cars for All remains available but acknowledged district programs face shortages. Stakeholders and committee members pressed for restored or additional funding for the Heavy‑Duty Voucher Incentive Program (HVIP) and other medium‑/heavy‑duty incentives; CARB said no new HVIP core funds are proposed in the governor’s package for several years and that settlement funds (pending) could be a possible source for incentives if finalized.
CARB also briefed the committee on a small e‑bike pilot that launched with $3 million in December 2024; the program received 1,500 applications in its first window and CARB expects that initial window’s funds to be fully redeemed soon. CARB plans additional solicitations (an immediate $2 million and a later $21 million pool) and is modifying application processes and outreach to reduce access barriers for low‑income residents.
Assembly members urged the administration and committee to protect incentive funding for medium‑ and heavy‑duty transitions and for locally administered equity programs; CARB and stakeholders said they would continue to seek funding paths and noted the May revision and cap‑and‑trade decisions will shape the final allocations.
