California had been motivated, owing to federal resistance to climate policy, to develop its own state-level set of strategies that would keep its ZEV transition on track. The state officials on August 19, 2025, presented an eight-page strategic report to Governor Gavin Newsom, describing a battery of measures to offset the diminution of federal incentives and to safeguard public health in communities undergoing this pollution.
The report proposes, at its core, the reinstatement of state rebates to make up for the lost federal subsidies. From 2010 to its expiration in 2023, California’s rebate program allocated some $1.49 billion toward incentive purchases of electric, hydrogen, and plug-in hybrid vehicles, up to $7,500 per vehicle-which kept 456 million gallons of fuel from being consumed. It warns that, without the renewal of funding from the state, California may not meet its emission reductions and may even risk losing federal air quality standards.

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Besides new financial incentives, officials have also proposed reinstituting benefits such as access to toll lanes and HOV lanes for clean vehicle drivers, benefits that are currently under threat in the absence of federal approval. They also plead for better promotion and maintenance of EV charging infrastructure; issues not amenable to short fixes include: fewer charging stations, frequent breakdowns of existing stations, and long waiting times for an operational unit.
The state’s own vehicle fleet of more than 35,000 vehicles is also identified as a potential trailblazer for the application of zero-emission technologies. The accelerated conversion of this fleet could act as the practical initiative with which to publicly demonstrate ZEV implementation.
Hence, California’s new incentives are suggested to ascend beyond the realms of mere policy transformation into moral and legal obligations. Addressing the urgency of the issue: there are about 1,500 air-pollution-related deaths every year in Southern California areas alone, said CARB Chair Liane Randolph.
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