In one of the many squabbles over future Trump Administration policy that has cropped up as his Cabinet and its day one priorities take shape, California Governor Gavin Newsom, who obviously has his eye on the 2028 Democratic candidacy, has threatened intervention if President-elect Donald Trump derails a current form of the green energy push.
President-elect Trump has indicated that he might do away with the current administration’s EV tax credit, which incentivized the purchase of an electric vehicle. As background, President Joe Biden implemented a tax credit of up to $7,500 to subsidize and incentivize such vehicles and their purchase. Trump reportedly aims to axe it.
In a press release on the matter released by the Office of Governor Newsom, he said, ” California has surpassed 2 million zero-emission vehicles (ZEV) sold, reaffirming California’s status as the country’s leader in clean vehicles. This milestone comes a little over two years after California eclipsed the 1 million ZEV sales mark.”
Continuing, the press release noted that Newsom has responded to a potential Trump Admin action on the matter, saying, “To ensure the state’s continued progress, Governor Gavin Newsom today announced that if the incoming Trump Administration eliminates a federal ZEV tax credit, he will propose creating a new version of the state’s successful Clean Vehicle Rebate Program, which was phased out in 2023. During its lifetime, the CVRP funded more than 594,000 vehicles and saved more than 456 million gallons of fuel.”
Describing how such a subsidy would be funded, the press release pointed to one of California’s many forms of heavy taxation, saying, “The proposed California rebates, which would include changes to promote innovation and competition in the ZEV market, could come from the Greenhouse Gas Reduction Fund, which is funded by polluters under the state’s cap-and-trade program.”
And, describing the massive scope of EV use in California, the press release provided, “In the third quarter of 2024, Californians purchased 115,897 ZEVs, representing 26.4% of all new vehicle sales in the state. With more electric vehicles (EVs), including plug-in hybrids, on the road every day, consumers are benefitting from the state’s work to build a bigger, better and more reliable charging network.”
Governor Newsom provided a statement on the matter for the press release, saying that he “will intervene” if the tax credit is slashed. He said, “Consumers continue to prove the skeptics wrong – zero-emission vehicles are here to stay. We will intervene if the Trump Administration eliminates the federal tax credit, doubling down on our commitment to clean air and green jobs in California.”
Continuing, Governor Newsom characterized the subsidy for the vehicles as being about “clean transportation” and encouraging cars that “don’t pollute.” He said, “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.”
Concluding after providing more statistics on EV use in California, the press release said, “This is a major milestone on California’s path to a clean transportation future. In addition to advancing ZEVs, the Newsom Administration is prioritizing clean fuel production, public transit and rail infrastructure enhancements, and a cleaner, smarter electric grid to help power it all. As California works toward this clean transportation future, the state is also advancing efforts to prevent gasoline price spikes.”
Watch Newsom comment on EVs and indicate Tesla might be excluded here:
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