CALIFORNIA AB1267 – 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 sponsored AB 1267 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 2.0 report here.) While this bill did not pass into law in 2023, there’s a good chance it will come back in 2024. Please sign on to show your support!
5/18/23: Assembly Appropriations Committee failed to pass bill out of suspense file
Bill Supporters
To the extent AB 1267 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 1267would require the California Air Resources Board (CARB) to:
Develop a strategy for identifying lower-income drivers who use the most gasoline, and expediting their switch to ZEVs.
Provide an additional ZEV incentive to gasoline superusers, in an amount that maximizes the displacement of gasoline and vehicle emissions per dollar spent.
Report on the impact of ZEV incentive spending on emissions cuts and transportation savings in lower-income communities.
“By switching to an EV, the biggest gasoline users get the added benefit of saving on average $800/month on fuel and maintenance and repairs — 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 1267 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.
A family in California enjoying their electric car.
Students at Skyline College in California celebrating EVs.
AB 1267 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.
The transportation sector is the biggest source of carbon emissions in California, with 25 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.
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.
The demand for ZEVs exceeds supply. While incentives are no longer needed to sell ZEVs, incentives ARE still needed to ensure that every one of the scarce supply of ZEVs is maximizing gasoline displacement, by going to someone who was a top gasoline user.
