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The democrat 1%, New state rules cap income levels for low-emission vehicle rebates

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After handing out close to $300 million in rebates for 
purchasers of low- and zero-emission vehicles, state regulators 
spotted a nettlesome trend -- much of the money ended up in the 
pockets of upper middle class and wealthy homeowners.

Did the state really need to subsidize owners of gleaming new 
Volts and Teslas and BMW i3s?

"If somebody is going to buy a top-line Tesla," said Dave 
Clegern, spokesman for the California Air Resources Board, "they 
may not need the help."

Late last month, new rules capped income levels for the Clean 
Vehicle Rebate Project, or CVRP. The program offers a range of 
rebates, including $1,500 for hybrid vehicles, $2,500 for 
electric cars and $5,000 for hydrogen cars. The program also 
took steps to encourage more low and moderate income families to 
join the clean vehicle fleet.

The rules took effect March 29 and eliminate rebates for 
consumers with annual incomes above $250,000 for single 
taxpayers and $500,000 for joint filing families. Low- and 
moderate-income buyers, defined as making less than three times 
the federal poverty level or $72,900 for a family of four, are 
eligible for an additional $1,500 rebate toward the purchase of 
a new low or zero emission vehicle.

Clean vehicle purchasers are also eligible for federal tax 
credits, which can lower the cost of a new vehicle by as much as 
$7,500.

The state established the rebate project in 2010 to encourage 
clean vehicle ownership, with a goal of having 1.5 million zero-
emission vehicles on California roads by 2025. The program is 
funded by bonds and proceeds from the cap-and-trade program, 
Clegern said.

Last year, a study commissioned by the Air Resources Board found 
that the typical rebate went to a college-educated, white male 
who owned a home and had an annual income of between $50,000 and 
$200,000.

Just 6 percent of the rebate dollars went to residents in poor 
communities, according to the report. The state failed to reach 
its modest, 10 percent goal to reach neighborhoods defined as 
disadvantaged communities.

Clegern said the changes were designed to better distribute the 
rebate money. "It's still reasonably generous," he said. "Our 
goal is still to get these vehicles on the road."

The debate continues among clean vehicle advocates on how to 
encourage growth in the industry.

Eileen Tutt, executive director of the California Electric 
Transportation Coalition, said the rebate program has been 
"incredibly effective." The nonprofit encourages growing the 
fleet of electric vehicles.

The organization opposed the caps, believing it could discourage 
prospective buyers who did not want to share personal income 
information with the state, Tutt said. CalETC felt it was too 
early for restrictions that made it harder to qualify for the 
rebates, she said. But she hopes the additional rebate for lower-
income families will expand the market.

Tutt said two pilot programs -- in San Joaquin Valley and 
Southern California -- encourage clean transportation by 
allowing moderate-income residents to combine rebates to put 
toward the purchase of a used, low-emission vehicle. "It's 
important to try it," she said.

The fast-growing clean transportation sector, which includes 
hybrid, electric and natural gas vehicles, added 7,000 new jobs 
in California last year, a 65 percent increase over the previous 
year, according to a study by industry group Advanced Energy 
Economy.

More than half of the people employed in the sector work on 
electric and hybrid vehicles. The industry got another boost 
this month from Palo Alto-based Tesla Motors, which booked more 
than 300,000 reservations for its lower-priced sedan in a week.

Steve Chadima, senior vice president for external affairs at 
Advanced Energy Economy, said the rebate program has encouraged 
clean vehicle purchases, much like the subsidies that helped 
build the market for solar panels a decade ago.

The price of electric vehicles will decline as more are 
produced, he said. "Is the program working?" Chadima asked. "The 
answer is mostly, 'yes.' "

Contact Louis Hansen 408-920-5043. Follow him at 
Twitter.com/HansenLouis.

CALIFORNIA CLEAN VEHICLE REBATE PROJECT

The top five brands and the percentage of rebates from 2010 -
2015:
Chevrolet: 21 percent
Nissan: 20 percent
Tesla: 15 percent
Toyota: 14 percent
Ford: 12 percent

Source: Center for Sustainable Energy

http://www.mercurynews.com/business/ci_29773932/new-state-rules-
low-emission-vehicle-rebates?source=most_viewed
  

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