California launching $1 billion rebate program for electric trucks

What you need to know: The California Clean Fuel Rewards program is now accepting applications from retailers to offer point-of-sale rebates for electric medium- and heavy-duty trucks with funding from the state's Low Carbon Fuel Standard. Rebates will be available statewide at the end of June to help fleets access and deploy zero-emission electric technology.

SACRAMENTO - The California Air Resources Board (CARB) today announced retailer enrollment is now open for the California Clean Fuel Reward (CCFR) for electric medium- and heavy-duty trucks.

Funded with revenue utilities generate from the state's Low Carbon Fuel Standard (LCFS), the program is expected to become the largest utility rebate program for electric trucks in the country, with $250 million available this year and over $1 billion in total rebate funding expected through 2030.

"This new rebate program builds on California's long record of incentivizing zero-emission vehicle deployment and reaffirms our unwavering commitment to clean transportation," said California Air Resources Board Chair Lauren Sanchez. "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."

How it works

Beginning June 26, rebates will be available at authorized retailers for public and private fleets across the state. The rebates range from $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. Public fleets will be eligible to purchase smaller Class 2b vehicles, such as pickup trucks used exclusively for business purposes.

"As the largest utility-led incentive program of its kind for medium- and heavy-duty vehicles, the California Clean Fuel Reward represents a historic step forward in fleet electrification, said Southern California Edison Senior Vice President and Chief Customer Officer Funmi Williamson. "By lowering upfront costs, it helps accelerate access to innovative vehicle technologies and supports long-term market transformation."

The program is administered statewide by Southern California Edison on behalf of CARB, 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.

Why it matters

Heavy-duty vehicles are among the largest contributors to local air pollution, especially in communities near ports and freight hubs. By accelerating the adoption of zero-emission technology, the program will deliver cleaner air for Californians who suffer the most from exposure to harmful emissions.

While California has made great progress in cleaning the air, nearly 18 million residents breathe unhealthy air that exceeds safe standards and 1,500 die from air pollution every year in Southern California alone.

How we got here

First adopted in 2009, LCFS reduces air pollution and greenhouse gas emissions by setting a declining target for the carbon in transportation fuels used in California. Producers that don't meet established benchmarks buy credits from those that do. This system has played a major role in reducing the state's emissions and generated $4 billion in annual private sector investment toward a cleaner transportation sector.

As part of recent updates to the program, the Board directed the Executive Officer to prioritize issuing LCFS credits utilities generate from residential electric vehicle charging (known as "base credits") to support a statewide program that reduces the purchase price of commercial medium- and heavy-duty electric vehicles.

Building on success

The new rebate program complements and builds on California's efforts to support zero-emission vehicle deployment through incentives, a key strategy to continue to maintain the state's momentum in the face of federal rollbacks.

California's incentive strategy includes California's Clean Truck and Bus Voucher Incentive Project (HVIP) which has delivered more than $1 billion in funding to California fleets - supporting more than 2,000 fleets enabling the deployment of 11,600 clean vehicles and accumulating 181 million miles statewide. In addition to electric trucks, HVIP funds school buses, transit buses and shuttle buses, and hydrogen technology across vehicle types, with dedicated funding options tailored to the needs of small fleets and owner-operators.

In 2024, zero-emission vehicles made up nearly 23% of new medium- and heavy-duty vehicle sales in California - more than double the state's target and the highest total of ZEV sales ever reported.