California Gov. Gavin Newsom announced on Wednesday a $1 billion rebate program that will aim to help public and private fleets purchase medium and heavy-duty electric trucks across the state.
The initiative, which is called the California Clean Fuel Reward program, is expected to become the nation’s largest utility-backed electric truck rebate effort.
The announcement by Newsom comes just weeks after California officials reported the state had surpassed $1 billion in clean truck and bus incentives through existing programs that have helped deploy more than 11,600 clean vehicles statewide.
Beginning June 26, rebates ranging from $7,500 to $120,000 will be available through authorized retailers for qualifying commercial electric vehicles, including electric semis, box trucks, delivery vans and drayage trucks. Additionally, public fleets will also be eligible to purchase smaller Class 2B pickup trucks used for business purposes.
In Fresno, the new program could have some impacts, especially where agriculture and freight transportation are key parts of the local economy. Fresno sits along Highway 99, one of California’s busiest trucking corridors, and the region already struggles with some of the worst air quality in the nation – diesel truck emissions are a major contributor to ozone pollution and particulate matter in the Valley.
“I’ve been driving through the Valley for more than 20 years, and you can see how much diesel pollution affects communities, you know, especially along the [Highway] 99,” said Miguel Hernandez, owner-operator of a freight company in Fresno. “I think if the rebates actually do end up helping smaller trucking companies and freight businesses afford electric rigs, it definitely could make a difference in air quality and money for fuel.”
According to the governor’s office, “$250 million in funding will be available this year,” with more than $1 billion expected to be distributed through 2030.
The rebates are funded through California’s Low Carbon Fuel Standard program, which would generate revenue through clean fuel credits.
In a statement released on Wednesday, Newsom said that the state is continuing to invest in clean transportation despite changing federal priorities and growing competition from China in the electric vehicle market.
The new program will be administered by Southern California Edison on behalf of several utilities and agencies, including PG&E, San Diego Gas & Electric, the Los Angeles Department of Water and Power and the Sacramento Municipal Utility District.
“This could be a big opportunity for companies in the Central Valley that really like, rely on transportation every single day, you know,” said Daniella Ruiz, logistics manager for produce in Fresno. “So many businesses want to move toward cleaner trucks, but the upfront costs are just too much, it sucks.”
Agricultural businesses, local trucking companies and warehouse operators in Fresno County could potentially use the rebates to transition portions of their fleets to electric vehicles. The incentives may also increase demand for charging infrastructure projects across the Valley as more businesses look to qualify for state clean transportation programs.
Fresno has already seen investment in electric transportation infrastructure in recent years, including electric bus initiatives through the Fresno Area Express and charging station expansion projects supported by state grants. Experts say the new rebate program could accelerate those efforts while creating additional clean energy and transportation jobs in the region.
For more information on the California Clean Fuel Reward program, visit the California Air Resources Board or the Governor’s Office announcement.
