California is launching a new program to incentivize the shift toward cleaner commercial transportation, with Governor Gavin Newsom announcing a $1 billion rebate initiative for electric trucks.
Meant for the purchase of medium- and heavy-duty trucks, the California Clean Fuel Reward (CCFR) program will be available from June 26, 2026, Governor Newsom announced on May 13, 2026.
Authorized retailers for public and private fleets will offer the rebate, which will range from $7,500 to $120,000, to help purchase drayage trucks, electric semis, box trucks, delivery vans, and other fleet vehicles.
Public fleets can purchase smaller Class 2B vehicles, including pickup trucks used exclusively for business needs.
The program will be funded from the Low Carbon Fuel Standard program, with $250 million available this year and $1 billion in total rebate funding expected through 2030, according to the governor’s office.
California is launching a $1 BILLION rebate program for electric medium- and heavy-duty trucks.
Starting June 26, authorized retailers will have rebates of $7,500 to $120,000.
While Trump forfeits American automotive leadership, we’re continuing to dominate in the space. pic.twitter.com/12Cp3xjzlb
— Governor Gavin Newsom (@CAgovernor) May 13, 2026
The California Air Resources Board (CARB) announced that the program has begun accepting applications from retailers to offer point-of-sale rebates.
The program is administered statewide by Southern California Edison on behalf of CARB, Pacific Gas & Electric Company, San Diego Gas & Electric, the Los Angeles Department of Water and Power, and the Sacramento Municipal Utility District.
The rebate program is part of California’s initiative to maintain leadership in the clean vehicle industry amid growing competition from China and federal policy shifts, Governor Newsom said.
Blaming President Donald Trump for surrendering the U.S. auto industry to China, Governor Newsom said California was taking a different approach, one that will “define the future of transportation.”
“California will never stop fighting for good-paying American jobs, economic prosperity, and a more secure future for our workers and families,” he said.
New Program Builds on California’s Zero-Emission Goals
The new rebate program comes as California continues to pursue ambitious climate and emissions goals tied to transportation, which is one of the largest contributors of greenhouse gas emissions in the state.
This includes California’s Clean Truck and Bus Voucher Incentive Project, which has delivered over $1 billion in funding to fleets, supporting more than 2,000 fleets, helping the deployment of 11,600 clean vehicles, and totaling 181 million miles across the state, according to the governor’s office.
In 2024, zero-emission vehicles constituted roughly 23% of new medium- and heavy-duty vehicle sales in California, more than double the state’s target and the highest total of Zero-Emission Vehicle (ZEV) sales ever reported.
California Investing in Clean Transportation
The state’s investment in clean transportation extends far beyond freight trucks. California is expanding charging infrastructure, with the governor’s office emphasizing that a successful shift to clean transportation requires good chargers.
In January 2025, California outperformed its clean cars target, surpassing 2.5 million new ZEV sales, according to the governor’s office.
In his budget this January, Governor Newsom proposed a new, roughly $500 million incentive program, paired with expected automaker contributions, to boost ZEV adoption following the rollback of the federal EV tax credit.
The Trump administration has repealed integral parts of the Inflation Reduction Act and Bipartisan Infrastructure Law, the governor’s office pointed out, adding that broad tariffs have been imposed that have increased costs for American consumers while straining relations with allies.
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