SACRAMENTO – In a significant move towards a greener future, the California Air Resources Board (CARB) has announced the Driving Clean Assistance Program (DCAP), a new $242 million initiative designed to provide crucial car payment assistance to low-income Californians. This program aims to facilitate the transition to zero-emission vehicles for communities that need it most.
With California already witnessing impressive adoption rates of clean vehicles – nearly 2 million zero-emission vehicles sold and a quarter of new car sales being zero-emission – DCAP is strategically focused on ensuring that the economic benefits of this shift are accessible to all residents, especially those in underserved communities. Many of these communities, including tribal and rural areas, currently lack sufficient access to similar assistance programs. Imperial County is set to be the first region to implement DCAP.
The core of the Car Payment Assistance Program involves offering eligible participants up to $12,000 in grants. This substantial financial support is intended to help with the purchase or lease of a new or used zero-emission vehicle when they scrap their older, more polluting car. Furthermore, recognizing the additional costs associated with electric vehicle ownership, DCAP includes an extra $2,000 specifically for electric charging expenses. This assistance is versatile, covering zero-emission cars, motorcycles, and even e-bikes. To further ease the financial burden, low-interest loans will also be available to qualifying applicants.
Dr. Steven Cliff, CARB Executive Officer, emphasized the program’s importance, stating, “California is committed to achieving carbon neutrality and clean air, but this vision cannot be realized if clean transportation remains out of reach for many Californians. The Driving Clean Assistance Program directly addresses this challenge by prioritizing low-income communities, ensuring they too can benefit from zero-emission technology and expanded transportation options.”
DCAP is specifically structured to remove barriers for priority participants. The application process is designed to be accessible and user-friendly for individuals at or below 300% of the federal poverty level. Even for those who do not have an older vehicle to scrap, or prefer to use it for other mobility solutions like carsharing, a purchase assistance of $7,500 is available. To make vehicle financing more affordable, the program has partnered with various credit unions to offer vehicle loans capped at an 8% interest rate for eligible applicants.
This new car payment assistance program significantly broadens the reach of clean vehicle incentives across California. DCAP expands access to areas currently not covered by existing air district programs such as Clean Cars 4 All (CC4A). CC4A, since its inception in 2015, has been instrumental in distributing over $165 million, enabling 20,000 Californians to transition to cleaner vehicles while simultaneously removing older, high-polluting vehicles from California roads. The vehicles retired through CC4A were on average 25 years old with a fuel economy of around 22 miles per gallon, while the replacement vehicles boasted an average equivalent fuel economy of 80 mpg, demonstrating a significant leap in efficiency.
Despite recent increases in loan interest rates, the five air districts administering CC4A programs – San Joaquin Valley, South Coast, Bay Area, Sacramento, and San Diego – have reported continued growth in program participation, highlighting the strong demand for car payment assistance for cleaner vehicles.
DCAP is set to roll out in additional counties not currently served by CC4A programs through early 2025, further extending the reach of this vital assistance.
Beyond the initial purchase incentives, these programs are designed to provide long-term financial relief to families by reducing ongoing expenses. Lower gasoline costs and reduced vehicle maintenance associated with zero-emission vehicles can lead to substantial savings over time.
The transportation sector remains California’s largest contributor to air pollution and greenhouse gas emissions, disproportionately impacting disadvantaged communities. DCAP is a crucial component of a broader strategy that includes various vehicle-purchase incentive programs aimed at accelerating the adoption of clean vehicles in California. These incentives are essential for achieving the state’s ambitious air quality and climate goals, including Governor Gavin Newsom’s executive order mandating that all new car and passenger truck sales in California be zero-emission by 2035. Importantly, these state-level car payment assistance opportunities can often be combined with federal program funding, amplifying the benefits for eligible Californians.
