California's Clean Vehicle Rebate Project runs out of money - latimes.com Next year's funds will be reduced to $2500 max, down from $5000.
That's bad timing with HOV stickers expiring starting July 1st. The title could have been "California runs out of money" and it would not have been misleading.
That's not exactly what the article (3 days ago) said. It said they have to VOTE on it. It said the number of EV's is increasing ... so even when they TRIPLE the amount of people who can receive, they MAY have to reduce the amount. It turns on how the vote goes. Just because the Times says something now, that makes it likely? ... well ... when DOESN'T the Times (and most media outlets) attempt to create drama where there may very well be none.
Well that seems like pro ARB controversy. How about this try at neutral reporting in the paper. The clean vehicles program has been an overwhelming success, and already the goal for 2011 has been reached. Because of high demand for cars like the tesla and Nissan Leaf, along with federal tax credits of up to $7500 for clean vehicles there will likely be at least 5,600 vehicles in 2012 that would qualify for the program. The Arb has requested a tripping of the funding of the program to give each of the new purchasers some money. "Joe Blow professor of economics at Stanford has estimated that the program will not result in anymore clean vehicles in the country, but will add $15 Million to California's deficit for next year. " The part in quotes is made up, but I'm sure I can email some professors at Stanford or Berkley and get a similar statement. That would be proper controversy, but.....
California is a fiscally inept state. I expect rebates like this to eventually end up on the cutting block as it find its budget ever more of a mess.
The title of the OP is somewhat misleading, as the rebate cash applies to PHEV's as well. It'll be interesting to see what effect, if any, limiting the amounts of rebate cash has that goes to the PHEV Prius ... presuming it has any effect. Imo, the Prius PHEV will be popular enough to stand on its own, even if incentives ARE smallerized ... based off the fact that many are willing to install after market PHEV kits that may (potentially) void factory warranties. .
