California Announces $1 Billion Electric Truck Rebate Program

The California Air Resources Board on May 13 announced the launch of a $1 billion rebate program for electric medium- and heavy-duty trucks through the California Clean Fuel Reward program. The initiative is funded by the Low Carbon Fuel Standard, or LCFS, program with more than $1 billion in total rebate funding expected through 2030.

Starting June 26, rebates ranging from $7,500 to $120,000 will be available at authorized retailers for public and private fleets across the state. Eligible vehicles include electric semis, drayage trucks, box trucks, delivery vans, and other commercial fleet vehicles. Public fleets will also be eligible for certain Class 2b vehicles used exclusively for business purposes.

The program aims to lower upfront costs and accelerate adoption of zero-emission vehicle technology while supporting California’s clean transportation goals.  The California Clean Fuel Reward is expected to become the largest utility rebate program for electric trucks in the country.

The LCFS program, adopted in 2009, sets a declining target for the carbon intensity of transportation fuels used in the state to support emission reductions. The board revised the program in June 2025, strengthening carbon intensity reduction goals by requiring a 30 percent cut by 2030 and a 90 percent reduction by 2045. The LCFS operates through a credit trading mechanism, wherein fuel providers below the emissions benchmark generate credits that can be sold to higher-emitting suppliers. This market-based structure has generated around $4 billion annually in private sector investment.