Why Newsom vetoed a bill to give rebates to convert cars to zero-emission vehicles

If you were thinking of converting your gas guzzler or a classic hotrod into a zero-emission vehicle and hoping to get some help from the state to pay for the conversion, you will need to wait some more.

A bill from state Sen. Anthony Portantino, D-Burbank, that aimed to get California vehicle owners up to $4,000 toward the conversion has become one of the casualties of a tough budget year as Gov. Gavin Newsom and lawmakers are in the final days of negotiations on how to fill a $45 billion deficit.

Portantino’s bill, SB 301, would have required the State Air Resources Board to set up a Zero-Emission Aftermarket Conversion Project after budget appropriations or at the board’s discretion using money from another clean transportation program to give those eligible the rebate for a gas or diesel fuel car converted to a zero-emission vehicle or ZEV.

The board would have been tasked with establishing guidelines and minimum eligibility criteria. The bill required that a converted vehicle have a range of at least 100 miles, among other criteria.

In his veto message last week, Newsom highlighted the state’s budget crunch.

“While I share the author’s desire to further accelerate the state’s transition to ZEVs, this bill creates a new program at a time when the state faces a $44.9 billion shortfall for the 2024-25 fiscal year,” the governor said. “Additionally, there is no funding currently identified or available in the state budget to support this new program.”

Portantino said he respects the governor’s position on the bill.

“We’re in a historic budget situation with a large deficit. I obviously was optimistic and the bill had language that it would only be implemented upon appropriations and we thought that would entice (the governor) to sign it, but I understand given the fiscal situation in the state and that this is the first bill on his desk creating a new program,” Portantino said.

“I can’t fault him for his decision and hopefully they understand why we sent it because it is a good program and we wanted to make sure it had its opportunity to shine,” the senator added.

Portantino, who will be termed out after this legislative session, said he hopes the bill gets reintroduced.

“I am hoping someone else will get it through next year,” the senator said. “I think it is good public policy and sometimes during dark budget years, you have to make hard decisions.”

Portantino said the Specialty Equipment Market Association with members in his district supported the legislation.

The association, whose website notes it includes manufacturers, distributors, retailers, auto restorers, car clubs, race teams and other groups, was a sponsor of the bill.

“SB 301 addresses consumers’ desire for clean transportation options by funding a creative alternative way to make ZEV ownership more accessible and affordable,” the group said in a press release last year, adding that the bill preserves “California’s diverse and deep-rooted car culture, while helping the state meet its ambitious climate goals.”

In his veto message, Newsom also noted that the state was “fostering innovation and creating space” to help an industry flourish and the state had over 1.8 million zero-emission vehicles on the road.

“The state continues to invest billions of dollars in ZEV deployment and supporting infrastructure to achieve our ambitious climate and clean air goals,” Newsom said.

California’s environmental grade slipped in a recent statewide report from an A- to a B, with Newsom scoring a B-. The report noted that the governor’s “environmental record was a complex blend of achievements and rollbacks.” The governor, who has prioritized fighting climate change, was invited and spoke at a Vatican climate summit in May.