Zero-Emissions Vehicle Conversions Rebate Aims to Spur In-State Production of New Parts

A California Chamber of Commerce-supported job creator bill that will benefit the environment and create jobs in California passed the Assembly Natural Resources Committee this week with unanimous support.

SB 301 (Portantino; D-La Cañada Flintridge) incentivizes production of zero-emission vehicle parts in the state, increasing manufacturing and jobs, by offering a rebate for zero-emissions vehicle conversions.

Rebate for ZEV Conversions

The transportation sector is a major contributor to greenhouse gas emissions, and converting gas- and diesel-powered vehicles to zero-emissions vehicles (ZEV) can significantly reduce these emissions. This conversion process requires the production of new parts and components, such as electric motors, batteries, and charging infrastructure.

By offering a rebate for zero-emissions vehicle conversions, California can incentivize the production of these parts and components in the state, which will lead to increased manufacturing and job creation in California, the CalChamber told committee members in a letter.

The production of components for conversions requires specialized skills and expertise, which will lead to the creation of high-paying, skilled jobs. Moreover, as more individuals convert their cars and trucks to zero-emission vehicles, there will be increased demand for these components, leading to increased job growth in the manufacturing sector, the CalChamber pointed out.

The increased production of these components will also lead to further innovation and technological advancement in the manufacturing sector, creating new opportunities for research and development.

Step Forward

“We believe that offering a $4,000 rebate for converting gas- and diesel-powered vehicles to zero-emission vehicles would be a significant step forward in promoting manufacturing and creating jobs here in California,” the CalChamber said. “SB 301 is a logical step in the right direction of our electrification transition, providing consumers with more options for electrification while also spurring job growth here in California.”

SB 301 will be considered next by the Assembly Appropriations Committee.

Staff Contact: Brady Van Engelen

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Brady Van Engelen joined the CalChamber in November 2022 as a policy advocate. He led CalChamber advocacy on climate change, energy, environmental regulation and transportation matters until May 31, 2024. Before joining the CalChamber policy team, Van Engelen served as a senior policy manager at Bloom Energy, representing the company before the California Legislature and California Public Utilities Commission. He previously was a gubernatorial appointee to the California Geologic Energy Management Division (CalGEM) and served as special assistant to the state oil and gas supervisor. Van Engelen also was defense legislative assistant to then-U.S. Senator John Kerry and prior to working on Capitol Hill, worked in policy and advocacy roles at Veterans For America. Van Engelen served in the U.S. Army from 2002 to 2005, and received a Purple Heart and Bronze Star. He earned a master’s degree in government from Johns Hopkins University, and has an M.B.A. from the University of California, Davis.