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California Rolls Out $242 Million ZEV Subsidy Program For Low-Income Residents

DCAP Program Offers Grants Up To $12,000 For The Purchase Or Lease Of New Or Used ZEVs Including EVs

2 min read

By Michael Phoon • September 16, 2024

The California Air Resources Board (CARB) has unveiled a new $242 million initiative aimed at making zero-emission vehicles (ZEVs) including electric vehicles (EVs) more accessible to low-income residents across the state. 

The Driving Clean Assistance Program (DCAP) is set to provide substantial financial support to eligible Californians, helping them transition to cleaner transportation options.

In detail, the program offers grants of up to $12,000 for the purchase or lease of new or used ZEVs, including EVs, motorcycles, and e-bikes. In addition, it provides an extra $2,000 to cover electric charging costs. Participants can also access low-interest loans through partnering credit unions to further support their green vehicle investments.

CARB Executive Officer Dr. Steven Cliff expressed the program’s importance stating, “California has ambitious goals of achieving carbon neutrality and a clean air future, but reaching those targets is not possible if Californians are priced out of clean transportation options.”

Eligibility and Benefits

To qualify for DCAP, applicants must have an income at or below 300% of the federal poverty level. The program offers two main options:

  • Up to $12,000 in grants for those who scrap an older, non-electric vehicle
  • Up to $7,500 in assistance for those without a vehicle to scrap or who prefer alternative mobility options like carsharing

Expanding Access For All Californians

DCAP is designed to complement existing initiatives like Clean Cars 4 All (CC4A), which has already provided over $165 million in assistance to 20,000 Californians since 2015. The new program will focus on areas not currently served by CC4A, including many tribal and rural communities.

Imperial County, located along the Mexican border, will be the first to implement DCAP. Additional counties are expected to roll out the program through early 2025.

By facilitating the transition to ZEVs, DCAP aims to significantly reduce the environmental impact of transportation, especially in disadvantaged communities disproportionately affected by poor air quality.

DCAP is part of California’s broader strategy to meet its ambitious climate goals, including Governor Gavin Newsom’s order requiring all new car and passenger truck sales in the state to be zero-emission by 2035

As clean vehicles now represent 25% of total new car sales in California, with nearly 2 million ZEVs sold, this new program aims to ensure that low-income residents are not left behind in the state’s clean energy transition.

By combining state and federal incentives, California’s new program effort to make ZEVs an increasingly attractive and affordable option for all its residents while accelerating EV adoption. 

Want to learn more about EV? Thinking of buying an EV? Head over to EV.com and discover more.


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