TodayApril 15, 2022

Sales of electric cars draining CVRP bank in California

The Clean Vehicle Rebate Project (CVRP) reports that funding is needed for the five million electric vehicles projected to come online. While that might be a good problem to have, it needs to be addressed if we’re bringing more electric cars in to California.

What are the options for balancing the rebate program?

Could California offer to pay a dollar rebate or access to HOV lane? What about if California had an MSRP Cap (FCEV exempt) say $60k, $50k, $40k?
What about if there were an EPA All-Electric Range (AER) Minimum? If the car was under a specific dollar amount and over a certain range? Say greater than 25-mile driving range?

What if they only gave the rebate to people that made under a certain Income? If they capped it above a certain Tax-filing status? (FCEV exempt) For example, if your line 37 on your form 1040 tax-filing status was $150K-$250k? Or a percentage of the vehicle based on your tax status?

What if they changed the Rebate amounts or the amount for different types of hybrids, PHEV, EVs? -$500 for standard rebates, no Standard Rebates, no PHEV rebates, no Standard PHEV rebates

What if there were application limitations? If they limited the rebate to one per person?

These are all options being considered to alleviate the budget challenge.

Sales of electric cars draining CVRP bank in California

Sales of electric cars draining CVRP bank in California

SACRAMENTO – California Air Resources Board (CARB) says that California consumers are applying for clean-vehicle rebates at a record pace as demand for the cleanest most technologically advanced vehicles on the market skyrocketed over the past year. Electric vehicle rebates in California were 50 percent higher in 2018 than in 2017.

It’s a good news-bad news kind of announcement; that so many people have purchased EVs that the Clean Vehicle Rebate Program (CVRP) needs more money or to change the requirements of the rebate program.

Electric and plug-in hybrid electric cars are now 7.8 percent of all new car sales in California, and some areas such as Sacramento and San Luis Obispo counties nearly doubled their EV rebates over this past year.

“The state’s rebate program has proven to be a great success, and it is gratifying to see California’s vision for transforming to a zero-emissions fleet becoming a reality. ZEVs are a powerful weapon in our efforts to improve air quality and fight climate change,” said California Air Resources Board Executive Officer Richard Corey.

“As a result of this success, we are working with stakeholders on adjustments to the program. Our goal is to keep the sales momentum up and demonstrate an ongoing commitment to continue the new increase in the number of EVs on our roads and highways.”

The Clean Vehicle Rebate Project is one of several California Air Resources Board incentive programs designed to reduce air pollution and protect public health. CVRP promotes clean-vehicle adoption by offering rebates for the purchase or lease of new, eligible zero-emission vehicles. Since the program began in March 2010, the Center for Sustainable Energy, which administers the CARB program, has issued more than 277,000 rebates totaling $620 million for plug-in, electric and hydrogen fuel cell cars, and motorcycles.

Top Ten plug-in hybrids, battery electric vehicle sales in California

1 Tesla Model 3 Electric 12674
2 Toyota Prius Hybrid 10043
3 Toyota Prius Plug In Hybrid 6812
4 Tesla Model S Electric 4993
5 Chevrolet Volt Plug-In Hybrid 4737
6 Toyota RAV4 Hybrid 4383
7 Chevrolet Bolt Electric 4055
8 Tesla Model X Electric 3962
9 Ford Fusion Hybrid 3759
10 Toyota Camry Hybrid 3173*

*information from California New Car Dealers Association.

GM to Invest $300 Million, Add 400 Jobs at Michigan Plant for New Chevrolet Electric Vehicle.

More money and jobs are being poured into electric vehicles. Being in the top five of electric vehicle sales is a good reason to invest more money into EVs. California is twelve percent of the Nation’s sales. General Motors is investing $300 million in its Orion Township, Michigan, assembly plant to produce a new Chevrolet electric vehicle that will bring 400 new jobs to the Orion plant. Today’s announcement is part of GM’s new commitment to invest a total of $1.8 billion in its United States manufacturing operations, creating 700 new jobs and supporting 28,000 jobs across six states.

The new Chevrolet electric vehicle is in addition to the existing Chevy Bolt EV, further advancing GM’s commitment to an all-electric future. GM will design and engineer off an advanced version of the current award-winning Bolt EV architecture. Additional product information and timing for the new Chevrolet EV will be released closer to production.

The 400 additional jobs are incremental to numbers associated with GM’s transformation announcement last fall. The new Chevrolet EV is in addition to the company’s earlier report that Cadillac will be the first brand to get vehicles off a future EV platform.

“We are excited to bring these jobs and this investment to the U.S.,” said GM Chairman and CEO Mary Barra during an announcement at the plant with employees, elected officials and community leaders. “This new Chevrolet electric vehicle is another positive step toward our commitment to an all-electric future. GM will continue to invest in our U.S. operations where we see opportunities for growth.”

Where will the new GM EVs be produced?

The new electric vehicle had been slated for production outside of the U.S. The decision to bring it to Orion is based on many factors, including:

The Orion plant currently builds the Bolt EV, and the new Chevrolet EV will be based off an advanced version of the same vehicle architecture.

Moving production to a U.S. manufacturing plant supports the rules of origin provisions in the proposed United States, Mexico, and Canada Agreement.

Sales of electric cars draining CVRP bank in California

Sales of electric cars draining CVRP bank in California

IEA says Electricity is the fuel of the future

The International Energy Agency reports that Electricity continues to position itself as the “fuel” of the future, with global electricity demand growing by 4% in 2018 to more than 23 000 TWh. This rapid growth is pushing electricity towards a 20% share in the total final consumption of energy. Increasing power generation was responsible for half of the growth in primary energy demand.

“We have seen an extraordinary increase in global energy demand in 2018, growing at its fastest pace this decade,” said Dr. Fatih Birol, the IEA’s Executive Director. “Last year can also be considered another golden year for gas, which accounted for almost half the growth in global energy demand. But despite major growth in renewables, global emissions are still rising, demonstrating once again that more urgent action is needed on all fronts — developing all clean energy solutions, curbing emissions, improving efficiency, and spurring investments and innovation, including in carbon capture, utilization, and storage.”

Electric Cars by Electric Range & Base MSRP

Vehicle Make and Model AER (EPA) Base MSRP

BMW 530e xDrive iPerformance
Electric Range 14
Base MSRP $55,700

Audi A3 e-tron
Electric Range 16
Base MSRP $39,500

BMW 530e iPerformance
Electric Range 16
Base MSRP $53,400

Volvo XC60 T8
Electric Range 17
Base MSRP $55,300

Volvo XC90 T8
Electric Range 17
Base MSRP $67,000

Volvo S90 T8
Electric Range 21
Base MSRP $63,900

Mitsubishi Outlander PHEV
Electric Range 22
Base MSRP $34,595

Toyota Prius Prime
Electric Range 25
Base MSRP $27,350

Ford Fusion Energi 26 34595
Electric Range 26
Base MSRP $34,595

Kia Niro Plug-in Hybrid
Electric Range 26
Base MSRP $28,500

Hyundai Sonata Plug-in Hybrid
Electric Range 28
Base MSRP $32,400

Hyundai Ioniq PHEV 29 25350
Electric Range 21
Base MSRP $63,900

Kia Optima Plug-in Hybrid
Electric Range 29
Base MSRP $35,390

Chrysler Pacifica
Electric Range 32
Base MSRP $39,995

Honda Clarity Plug-In Hybrid
Electric Range 47
Base MSRP $33,400

smart Electric Fortwo Cabriolet
Electric Range 57
Base MSRP $28,100

smart Electric Fortwo Coupe
Electric Range 58
Base MSRP $23,900

FIAT 500e
Electric Range 84
Base MSRP $32,995

Honda Clarity Electric
Electric Range 89
Base MSRP $37,540

BMW i3 REx
Electric Range 97
Base MSRP $48,300

Kia Soul EV
Electric Range 111
Base MSRP $33,950

Ford Focus Electric
Electric Range 115
Base MSRP $29,120

Hyundai Ioniq Electric
Electric Range 124
Base MSRP $30,315

Volkswagen e-Golf
Electric Range 125
Base MSRP $30,495

BMW i3s REx
Electric Range 126
Base MSRP $51,500

Nissan LEAF
Electric Range 150
Base MSRP $29,990

BMW i3
Electric Range 153
Base MSRP $44,450

BMW i3s
Electric Range 153
Base MSRP $47,650

Tesla Model 3
Electric Range 215
Base MSRP $35,000

Chevrolet Bolt
Electric Range 238
Base MSRP $36,620

Tesla Model X
Electric Range 238
Base MSRP $88,000

Tesla Model S 310 85000
Electric Range 310
Base MSRP $85,000

*information provided by the Center for Sustainable Energy

Lease-only vehicles

• Honda Clarity Fuel Cell
• Honda Clarity Electric

– Fleet-only vehicles

• Bolloré Blue Car

– Out-of-production vehicle models

• Cadillac ELR
• Chevrolet Spark EV
• Ford C-MAX Energi
• Hyundai Tucson Fuel Cell (also lease only)
• Mercedes-Benz B250e
• Mercedes-Benz S550e
• Mitsubishi i-MiEV
• Toyota Prius Plug-in Hybrid (pre-2016 model year)
• Victory Empulse TT

Lou Ann Hammond

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a founding member of the Women's World Car of the Year #WWCOTY, and board member of the Women in Automotive.

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