California unveils a $1 billion rebate program for electric trucks
Gov. Gavin Newsom has announced that California has launched a $1 billion rebate program to boost the sales of electric medium‑ and heavy‑duty trucks, using money from the state's Low Carbon Fuel Standard program.
The rebates run $7,500 to $120,000 and can be applied toward the purchase of new electric medium‑ and heavy‑duty commercial vehicles, including drayage trucks, electric semis, box trucks, delivery vans and other fleet vehicles.
Some $250 million will be available this year, and more than $1 billion in total rebate funding is expected through 2030 through what's called the California Clean Fuel Reward for electric medium‑ and heavy‑duty trucks.
The rebates will be available at authorized retailers for public and private fleets across the state, starting on June 26.
"This new rebate program builds on California's long record of incentivizing zero‑emission vehicle deployment and reaffirms our unwavering commitment to clean transportation," Lauren Sanchez, chair of the California Air Resources Board, said in a statement.
In a news release announcing the truck rebates, Newsom made reference to President Donald Trump, who has repealed key parts of the Inflation Reduction Act and other legislation passed during the Biden administration. The White House last year backed legislation dubbed the One Big Beautiful Bill Act that included provisions that eliminated the federal tax credit of up to $7,500 on electric vehicle purchases and leases.
"While Trump surrenders America's auto industry to China, California is choosing a different path - one that cements our global leadership in clean technologies that will define the future of transportation," Newsom said.
The truck rebate program will be administered by Southern California Edison on behalf of the Air Resources Board, Pacific Gas & Electric Company, San Diego Gas & Electric, the Los Angeles Department of Water and Power, and the Sacramento Municipal Utility District. Fleets can participate regardless of their location.
Public fleets will be eligible to purchase smaller Class 2b vehicles, such as pickup trucks used exclusively for business purposes.
Wayne Winegarden, senior fellow at the Pacific Research Institute, a Pasadena think tank that advocates for free-market solutions to policy issues, criticized the rebate program.
"When you look out at all of the different needs that the state has, and you look at the net effect that this kind of rebate program would actually have, is it really a worthwhile use of a billion dollars?" Winegarden said. "Why are we giving (automakers) more hard-earned taxpayer money? It doesn't make sense."
But a spokesperson for the Air Resources Board said the program's funding does not come out of the state's budget.
"It comes from revenue utilities generate from the sale of low-carbon fuel standard credits," CARB communications director Lindsay Buckley said in an email.
The low-carbon fuel standard, or LCFS, sets declining levels of CO2 in transportation fuels used in California. Producers that don't meet established benchmarks buy credits from those that do.
Under the truck rebate program, Buckley said, "EV drivers generate LCFS credits when they charge, and the utilities receive credits on behalf of their customers. When the utilities sell the credits, they must return the value of the revenue to benefit current or future EV drivers. This program is one way they're returning the revenue."
Credits and spending will be overseen by the California Public Utilities Commission.
Heavy‑duty vehicles are a major source of local air pollution, especially in communities near ports and freight hubs. According to CARB, nearly 18 million Californians breathe air that exceeds safe standards and 1,500 die in Southern California alone from air pollution each year.
"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," Sanchez said.
The Newsom administration is also working on reviving California-funded rebates for zero-emission passenger cars and trucks, such as EVs, plug-in hybrids and hydrogen fuel cell vehicles.
Earlier this year, the governor's office released language for a trailer bill - legislation tied directly to the annual state budget - for a proposal to set aside $200 million to fund a new rebate program.
The proposal calls for the Air Resources Board to enter into grant agreements with automakers to "provide incentives for consumers" to buy or lease light-duty passenger electric vehicles "at the point of sale." Participating manufacturers would match the state's contributions on a one-to-one basis.
The plan calls for price caps of $55,000 for new passenger vehicles; $80,000 for vans, SUVs and pickup trucks; and $25,000 for used vehicles. All vehicles in the proposed program must be registered to California residents.
The specific dollar amounts of the incentives are still to be determined. The budget proposal must be finalized next month in Sacramento.
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This story was originally published May 14, 2026 at 9:28 PM.