CALIFORNIA'S ELECTRIC BICYCLE INCENTIVES PROJECT.

California is set to join a number of other cities and states in the US by offering rebates and tax credits for electric bicycles. California’s Electric Bicycle Incentives Project has been over a year in the making and recent updates were made during a meeting of the California Air Resources Board (CARB). This program aims to make electric bicycles more accessible and affordable to Californians by providing financial incentives.

The updates come after an end-of-the-year meeting of the California Air Resources Board (CARB) to discuss the parameters of the Electric Bicycle Incentives Project. According to the California Bicycle Coalition, which shared a follow-up after the meeting, members of the discussion included representatives from the e-bike industry, bicycle shop owners, nonprofits who work with potential voucher recipients, bicycle coalition leaders, and members of the public interested in the program.

The program’s details were still being finalized at the end of the year, but the meeting helped shed more light on the aspects of the program that have already been decided. One of the new updates is additional funding for the program. $10M had already been earmarked for the program, but an additional $3M in funding will be added to the total, likely to help with program outreach. This would allow more of the initial $10M to go directly toward the e-bike rebates themselves.

CARB also confirmed that the income limit to qualify for the e-bike voucher will be lowered. We previously reported that in order to qualify for the voucher, participants’ household income would have to be below 400% of the Federal Poverty Line (FPL), which amounts to $51,000 for a single person and $106,000 for a family of four at current figures. Now we’ve learned that the income limit would be lowered to 300% of FPL to align the eligibility requirements for the e-bike program with those of other CARB clean vehicle programs. This would mean that the maximum income limit to qualify for the e-bike voucher would be approximately $38,000 for a single person or $79,500 for a family of four. This change will make the program more accessible to a wider range of individuals and families who are interested in purchasing an electric bike.

Another update to the program is the inclusion of all three classes of e-bikes in the program. The program originally listed only Class 1 and Class 2 electric bikes (those that are limited to 20 mph) as qualifying for rebates. But due to overwhelming support for allowing Class 3 e-bike models (that can reach 28 mph with pedal assist) to be eligible for incentives, CARB has decided to include all three classes of e-bikes in the program. However, manufacturers will have to apply for their models to be eligible for purchase with the vouchers.

The California Bicycle Coalition reports that manufacturers will also have to provide a two-year warranty on their e-bikes, likely in a nod to concerns about maintenance. This could be an issue for some manufacturers as many of the largest electric bicycle manufacturers in the US only offer one-year warranties on the entire e-bike, though many offer longer warranties on the frame or motor. Some companies have started to offer even longer warranties of five years or more, though this is still not common in the industry.

The proposed value of the e-bike rebates remains unchanged, with $750 for a standard electric bicycle and $1,500 for a cargo electric bicycle. The program is expected to become active this year, but the exact date has not yet been confirmed. It's important to note that because the program’s details still have not been finalized and more public discussions are expected to be held, all of the above figures could still change before the program reaches implementation.

In summary, California's Electric Bicycle Incentives Project is an exciting development for the e-bike industry and for Californians. The program aims to make electric bicycles more accessible and affordable by providing rebates and tax credits. The program has been in development for over a year, and recent updates include additional funding, a lowered income limit to qualify for the rebate, and the inclusion of all three classes of e-bikes in the program. Manufacturers will have to apply for their models to be eligible for purchase with the vouchers and provide a two-year warranty. The proposed value of the rebates is $750 for a standard e-bike and $1,500 for a cargo e-bike. The program is expected to be launched this year, but the details are still being finalized. This program will encourage more people to switch to electric bikes which is a positive step towards sustainable transportation and cleaner environment.