CALIFORNIA AB 2401 – EV INCENTIVES FOR GASOLINE-BURDENED FAMILIES
ADDITIONAL INCENTIVES FOR LOWER INCOME GASOLINE SUPERUSERS
Lower-income families using the most gasoline face extreme financial burdens. California Assembly member Phil Ting introduced AB 2401 to help get gasoline-burdened families into electric vehicles. The bill would cut vehicle fuel costs for those who need it the most, while reducing auto pollution faster. (Read about the benefits of this approach in Coltura’s new Gasoline Superusers 3.0 report here.)
BILL Status:
9/22/24: Gov. Newsom vetoed the bill
8/29/24: Assembly Concurrence occurred by a vote of 74-0. The present bill status is “Awaiting Gov. Newsom Signature”. See here for more info.
8/28/24: Passed Senate by 39-0 vote.
5/23/24: Bill passed the California Assembly with unanimous support. Vote count: 72-0.
2/12/24: Bill introduced by Assembly member Ting with co-authors Assembly members Friedman and Schiavo, with sponsorship of Coltura, The Greenlining Institute, Coalition for Clean Air, UCS and Valley CAN; referred to Assembly Transportation Committee and Assembly Natural Resources Committee
Why was this bill vetoed?
In his veto message, Gov Newsom claimed the bill would impose new EV incentive application requirements on Clean Cars for All program recipients that “are onerous and will discourage some of the lowest-income residents in California from participating.” He also claimed “the new verification requirements would necessitate constant and costly monitoring by CARB of recipient driving patterns, further discouraging program participation”.
In fact, no applicants are excluded by the bill, and the only additional application requirement would be evidence of the current odometer reading of the applicant’s gasoline vehicle. This requirement could be satisfied with a check of the odometer reading at time of trade-in, a photograph of the odometer, or a signed attestation. There are no requirements to monitor any driving patterns.
Rather than “discouraging program participation,” the program would encourage participation by the most gasoline-burdened families. Presently, the program has far more applicants than available incentives, so the valuable incentives would be targeted to where they do the most good.
Bill Supporters
To the extent AB 2401 incentivizes the biggest gasoline users to switch to ZEVs, it will help reduce the total number of ZEVs that would be needed to reach CARB’s near-term target of cutting gasoline use in half by 2030.
AB 2401 would modernize the Clean Cars 4 All (CC4A) program at CARB by prioritizing incentives for low-income drivers who consume the most fuel, stand to benefit the most from cost-savings associated with owning zero-emission vehicles (ZEVs), and own older vehicles that produce high amounts of air pollutants. It would also provide an additional EV incentive for these drivers.
“By switching to an EV, the biggest gasoline users get the added benefit of saving on average of $589/month on fuel alone — that’s often enough to cover the monthly car payment on the ZEV.”
— Janelle London, Coltura
Check out this tool for estimating annual gasoline use, ZEV incentive payment and gasoline savings
GETTING SUPERUSERS TO SWITCH TO ZEVS FIRST MEANS FEWER TOTAL ZEVS ARE NEEDED TO CUT VEHICLE EMISSIONS IN HALF
9 million ZEVs vs 24 million ZEVs
WHY THIS BILL IS NEEDED:
Burning gasoline in our cars, trucks and SUVs is the single biggest source of California’s CO2 emissions, at more than 25% of the total. Consumer gasoline use has stayed essentially flat over the last decade. To meet statutory emissions reduction targets, the California Air Resources Board (CARB) calls for a 50% cut in gasoline use from 2021 to 2030. But the state is forecast by California Energy Commission (CEC) staff to decrease gasoline consumption just 10% by 2030 – far short of the 50% goal.
Meanwhile, EVs are primarily going to higher-income people, while lower-income Californians are bearing the biggest financial burdens of driving gas-powered cars.
Currently, ZEV incentives don’t take into account the driver’s gasoline use. They should. Switching to a ZEV has a much greater impact for a driver who was burning 1,000 gallons of gasoline a year than for a driver only burning 100 gallons — not only in terms of annual emissions avoided, but also in terms of household savings on gasoline and vehicle maintenance.
HOW AB 2401 MAXIMIZES CLIMATE AND EQUITY IMPACTS:
- Climate: An additional ZEV incentive is offered to Gasoline Superusers. This helps ensure that taxpayer dollars spent on incentives are maximizing gasoline displacement.
- Equity: By requiring a strategy to expedite the switch to ZEVs for lower-income Superusers, the bill helps those who bear the biggest financial burden of paying for gasoline and vehicle maintenance – often because they can’t afford to live near where they work, or must drive long distances as part of their work and family obligations.
AB 2401 REDIRECTS VEHICLE FUEL SPENDING AWAY FROM OIL COMPANIES, TOWARD HOUSEHOLD SAVINGS & ELECTRICITY
Incentivizing families spending the most money on gasoline to switch to ZEVs lets them put some of that money back into their own pockets, and redirects much of the rest toward clean, renewable electricity produced in California.
Did You Know?
- The transportation sector is the biggest source of carbon emissions in California, with 27 percent of total emissions coming from light-duty vehicles.
- Vehicle emissions harm low-income communities of color disproportionately.
California is forecast to cut gasoline use 10% by 2030 – far short of the 50% cut required to meet its climate goals. - ZEV incentives historically have been used disproportionately by higher-income, lower-mileage drivers. In California, EV drivers travel on average 10,000 miles a year, vs Superusers at 40,000 miles.
- Many lower-income households using the most gasoline have the longest commutes in inefficient internal combustion engine vehicles, which forces them to spend a large percentage of their household income on fuel. California Superusers below the median income spend on average 15% of their household income on gasoline alone, and 24% on gasoline plus vehicle maintenance and repairs.
