Dive Brief:
- California’s popular e-bike incentive program canceled an anticipated third round of applications when its funding was reallocated to another state program.
- The incentive program, launched in 2024, provided vouchers up to $2,000 toward the purchase of a new electric bike for California residents 18 years or older with an annual household income of three times the federal poverty level or less.
- The decision was “due to state budget constraints,” a California Air Resources Board spokesperson said in an emailed statement.
Dive Insight:
More than 2,100 vouchers were issued in the program’s first two rounds, CARB said. It’s most recent funding round, in May, was filled within an hour of opening.
The remaining $17 million of the program’s initial $30 million budget was reallocated to CARB’s Clean Cars 4 All program, according to Streetsblog California. Demand overwhelmed CARB’s capacity to handle consumer response, Streetsblog reported.
“The E-Bike Incentive Project wasn’t flawless, but it represented a rare, tangible step” to reduce driving in the state, California Bike Coalition Communications Director Andrew Wright said in a web post.
CARB developed the e-bike program “in collaboration with interested parties through an extensive public process,” it said in a Dec. 3, 2024, press release. The program included more than 20 community-based organizations to assist with outreach and applications.
CARB said the cancellation “is a recent outcome of legislative direction,” and it has “just started informing program partners.”
The program also allowed participants to use the vouchers to purchase helmets, bike locks, bike racks and lights or reflective clothing if purchased at the same time as an eligible e-bike.
“The state is taking the wrong lessons from the turbulence of the EBIP rollout; the overwhelming demand makes clear this is a popular program that people want,” Wright said.
CARB said that “funding conversations are ongoing, and it's possible additional funding could be allocated in future years.”
