California Spends $3 Million on E-bike Program to Improve Climate

California has launched a new statewide incentive program offering income-eligible residents $2,000 toward the purchase of a new electric bike. The initiative, announced by the California Air Resources Board (CARB), aims to enhance access to zero-emissions transportation options for those who need it most. The e-bike project, funded with $3 million, will support up to 1,500 bicycles.

CARB Executive Officer Dr. Steven Cliff said, “By using e-bikes, people can get around and meet everyday needs while improving air quality.”

Cliff added, “Prioritizing equity and access is key as we work to achieve our zero-emissions goals, and this incentive program will support those efforts by helping e-bikes be part of the solution.”

In September, California introduced an income-based grant and loan assistance program to facilitate the purchase of clean vehicles. A funding plan also targets small businesses, helping them transition to cleaner technologies for their fleets.

CARB Chair Liane Randolph said the policy “strikes a balance between reducing the environmental and health impacts of transportation fuel used in California and ensuring that low-carbon options are available as the state continues to work toward a zero-emissions future.”

Governor Gavin Newsom has proposed reviving the Clean Vehicle Rebate Program if President-elect Donald Trump eliminates the federal electric vehicle tax credit, worth up to $7,500. The proposal is expected to exclude Tesla vehicles from eligibility for rebates, a move criticized by Tesla CEO Elon Musk as “insane.”

Newsom said, “Consumers continue to prove the skeptics wrong — zero-emission vehicles are here to stay,” adding, “We’re not turning back on a clean transportation future — we’re going to make it more affordable for people to drive vehicles that don’t pollute.”

The e-bike initiative aligned with California’s environmental goals, as state regulators have approved stricter climate emission standards. However, these policies may lead to increased gasoline prices, with forecasts suggesting an increase of up to 20 cents per gallon.

Republican Assemblyman Tom Lackey warned of potential hikes of up to 65 cents per gallon.

Newsom’s office argued that excluding Tesla is intended to encourage market competition and innovation, with 42% of previous rebates going to Tesla buyers. The governor also called for a special legislative session to strengthen state laws against potential federal rollbacks.

Wedbush senior analyst Dan Ives said, “This is clearly a political move of Newsom and California towards Musk which now has a front seat to the Trump White House and will be a key player in ultimately getting these federal tax credits wiped away among a myriad of other things on the federal front.”