Governor Newsom announces California’s new $1 billion rebate program for electric trucks, as Trump cedes global clean vehicle market to China

What you need to know: Governor Newsom launched a new $1 billion rebate program for electric medium- and heavy-duty trucks. California continues to incentivize zero-emission vehicle deployment and is committed to building the future of clean transportation even as Donald Trump cedes America's clean automotive industry to China.

SACRAMENTO - Governor Gavin Newsom announced today that applications are open for the California Clean Fuel Reward (CCFR) rebate program for electric medium- and heavy-duty trucks. Rebates will be available statewide to help fleets access and deploy zero-emission electric technology - positioning California to compete as global electric heavy-freight trucks sales tripled in 2025 alone.

With funding from the Low Carbon Fuel Standard (LCFS) program, CCFR is expected to become the largest utility-administered 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.

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. California will never stop fighting for good-paying American jobs, economic prosperity, and a more secure future for our workers and families.

Governor Gavin Newsom

Exhaust-spewing trucks 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.

"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 purchase, we're making zero-emission trucks the better choice for fleets and delivering cleaner air along freight corridors where it's needed most."

While California has made great progress in cleaning the air, nearly 18 million residents breathe unhealthy air that exceeds safe standards.

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.

"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."

New rebates extend California's lead in zero-emission trucks

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.

This 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.

California doubles down on clean transportation investments

Clean freight is only part of the picture. California is also building out the charging infrastructure that passenger vehicle drivers need because a complete clean transportation future requires both the trucks moving goods and chargers powering the cars.

In January 2025, California shattered its clean cars goal, surpassing 2.5M new ZEV sales - showing that policy certainty creates resilient markets global investors can trust.

California is doubling down on its clean transportation leadership. In his January 9 budget, Governor Newsom proposed a new, nearly half-a-billion-dollar incentive program when matched with a required automaker incentive to accelerate ZEV adoption and respond to the loss of the federal ZEV tax credit, while supporting American automotive innovation at a critical moment-just as the Trump administration has abandoned the good-paying jobs of this global market.

Competing to win the future requires investing in clean energy technologies, strengthening partnerships with allies, and reducing dependence on China in critical sectors.

Instead, the Trump administration repealed key parts of the Inflation Reduction Act and Bipartisan Infrastructure Law, and imposed broad tariffs that have raised costs for American consumers while straining relationships with close allies. Despite Donald Trump's efforts to cede the clean transportation economy to China, California is ensuring American workers and manufacturers can compete and win in the industries that will define this century.

The Golden State's commitment extends beyond consumer incentives. In the latest Clean Transportation Program Investment Plan Update, the CEC allocated $98.5 million in light-duty zero-emission vehicle (ZEV) infrastructure funding for fiscal year 2025-2026 to focus on Level 1 and Level 2 charging in locations with longer vehicle dwell times, including at-home charging with a specific focus on multifamily residences.

The CEC is also continuing to study infrastructure needs across the state, with the following planned for release later this year:

• New and ongoing ZEV infrastructure funding opportunities driven by the $98.5 million investment from the Clean Transportation Program.
• The third Electric Vehicle Charging Infrastructure Assessment, as mandated by AB 2127 (Ting, 2018), which will assess California's EV infrastructure needs to meet demand.
• The next Electric Vehicle Infrastructure Deployment Assessment, as mandated by SB 1000 (Lara, 2018), to assess whether charging infrastructure is disproportionately deployed.

The gold standard for American EV infrastructure

California is tearing down barriers to ZEV deployment, speeding up EV charging station installations, and deploying infrastructure in hard-to-reach and low-income areas.

Becoming an EV driver in California is increasingly getting easier. There are now over 200,000 public and shared EV charging stations statewide. EV chargers can be found at grocery stores, park-and-ride lots, and even gas stations, whereas shared EV chargers can be found at apartment complexes, workplaces, doctors' offices, sports facilities, and other parking areas with some level of restricted access. This statewide network of public and shared private chargers is in addition to the estimated 800,000 EV chargers installed in California homes.