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CalBike Response to Governor’s ATP Clawback

January 18, 2023/by Jared Sanchez

CalBike is disheartened by Governor Gavin Newsom’s preliminary budget, which claws back almost half of the historic increase to the Active Transportation Program (ATP) of $1.1 billion (some funds were found from elsewhere for a net reduction of $200 million). We understand that a projected $22.4 billion budget shortfall requires cutting expenditures. However, the total transportation budget for 2023-24 is $32 billion, 3% less than the 2022-23 allocation, but even with some of the ATP clawback restored, the program is taking a disproportionate hit with its funding cut by 18%.

The ATP was created in 2013 with a $100 million annual budget. Since then, the annual allocation has more than doubled to around $230 million. However, demand for ATP funds has outstripped the funding from the program’s inception. As communities across California work toward Vision Zero goals and to meet residents’ demands to create more walkable, bikeable neighborhoods, the number and quality of applicants has soared. Even with the boost from last year’s budget and a total of $1.6 billion in Cycle 6, only about one-quarter of the projects from that cycle got funding.

While the governor found replacement funding for $300 million of the $500 million taken out of the program and promises that all the projects approved for grants in Cycle 6 of the Active Transportation Program will get the funding promised to them, the preliminary budget is a worrying sign that California isn’t serious about meeting its climate change goals.

It’s time to stop building freeways

The data is clear: Our climate goals and freeway spending decisions do not align. California’s Strategic Growth Council has asked our decision-makers to address the gap between the vision for a more climate-friendly and equitable transportation system and infrastructure spending decisions. The Council further points out to our state’s decision-makers:

“A significant share of funds at the state, regional, and local levels continue to be spent on adding highway lanes and other projects that increase vehicle travel. This funding not only adds to the maintenance burden of an aging highway system but also means less available funding for other investments that might move more people (such as running more buses or prioritizing their movement) without expanding roadways or inducing additional vehicle travel and provide Californians with more options to meet daily travel needs. Additionally, in most situations, particularly in urban areas, adding highway lanes will not achieve the goals they were intended to solve (such as reducing congestion) as new highway capacity often induces additional vehicle travel due to latent demand that then undermines any congestion relief benefit over time. Critically, these projects also add burdens to already impacted communities along freeway corridors with additional traffic and harmful emissions, and by further dividing and often displacing homes and families in neighborhoods that were segmented by freeways decades prior.”

California Transportation Assessment Report Pursuant to AB 285, California Strategic Growth Council

Early data from 2022 places transportation as the largest emitter of greenhouse gases (GHG), yet the governor’s proposed budget cuts funding for several programs that mitigate climate change while continuing to provide billions for infrastructure projects that will increase GHG emissions.

Californians bear the brunt of climate change. We know what we need to do to mitigate it. Yet the governor’s priorities, as revealed in his draft budget, promise austerity in the areas where we were already spending far too little and maintain funding levels for building and widening climate-destroying freeways.

The $1 billion for bikes in last year’s budget was a good step in the right direction, but it wasn’t enough. CalBike will pursue the following goals in the 2023 budget process:

  • Raise ATP funding to 10% of the state’s transportation budget — around $3.2 billion — by transferring funds from transportation projects that don’t align with the state’s climate goals.
  • Allocate $50 million for another round of e-bike purchase incentives in 2024
  • Set aside $500 million to help communities fund connected active transportation networks that provide viable alternatives to travel by car.
  • Restore full funding of all other programs for low- and no-carbon transportation.

More analysis of the budget from an active transportation perspective from Streetsblog.

https://www.calbike.org/wp-content/uploads/2023/01/Chula-Vista-bike-lanes-V2.jpeg 728 1030 Jared Sanchez https://www.calbike.org/wp-content/uploads/2018/07/calbike-logo.png Jared Sanchez2023-01-18 12:53:232023-01-18 12:53:23CalBike Response to Governor’s ATP Clawback

Local E-Bike Incentives Provide More Options for Californians

January 17, 2023/by Laura McCamy

The rollout of California’s statewide e-bike incentive program is getting closer, but it’s still a few months away. If you’d like to buy an e-bike and need help to make your purchase, many local programs currently provide incentives, and new ones may come online soon. 

We spoke with managers from two Bay Area agencies about the programs they administer. Peninsula Clean Energy (PCE) and 511 Contra Costa (511CC) have very different programs, and both have done follow-up surveys with participants, providing valuable insights about the successes and challenges of e-bike incentives.

Peninsula Clean Energy: Income-qualified e-bike vouchers

PCE started its E-Bikes for Everyone program in 2021 because “our end goal is zero transportation emissions by 2035,” according to Programs Manager Phillip Kobernick. Transportation is the largest source of greenhouse gas emissions, so he says PCE saw “potentially a lot of VMT reduction potential” in its e-bike voucher program.

In 2021, PCE offered $800 vouchers to residents in its service area (San Mateo County) with income at or below 400% of the federal poverty level. “It’s the most popular program we ever launched,” Kobernick says. The program had a $250,000 budget to provide 300 vouchers, and they were all claimed within four days after launch.

In 2022, PCE increased the rebate amount to $1,000, did more targeted outreach to slow the process, and gave out 239 vouchers.

Like the upcoming statewide incentive program, the PCE incentive is a point-of-sale voucher. It contracts with bike shops and sends qualified customers to buy bikes there. The buyer gets a discount in the amount of the voucher, and PCE pays the difference to the shop. Participants can also buy elsewhere (about half of the people in the program chose to do that) and get reimbursed after the purchase. The incentives cover up to 80% of the purchase price, so participants must pay for the remaining 20%. 

There have been some glitches in the rollout. For example, about half the people awarded vouchers didn’t use them; follow-up surveys found that the main reasons were price, availability of the desired model, and inability to do a test ride. PCE offered unused vouchers to people on the waitlist, and funds that don’t get used roll into the program budget for the following year. And they discovered a couple of instances where a grantee tried to sell their voucher rather than use it themselves.

Despite the challenges, the program is meeting its goals. “It looks like, through our surveys, we are seeing a noticeable reduction in VMTs (vehicle miles traveled),” Kobernick says. About one-third of participants now say that an e-bike is their primary mode of transportation, and he estimates that they have reduced their VMT by 10% on average. He noted that most cities would jump at a chance to implement a program delivering a VMT reduction.

The PCE program has had a budget of $547,000 over two years and will offer another round of vouchers in 2023. In 2022, El Concilio provided support for completing applications, and PCE worked with the Silicon Valley Bicycle Coalition to provide group rides and classes to help people feel comfortable on their bikes. 

How to apply for an E-Bikes for Everyone Voucher: The program is only open for a short period each year. Check their website for 2023 program information. 

511 Contra Costa: E-bike rebates without income caps

E-bike stats Contra Costa County

The Electric Bicycle Rebate Program 511CC offers to Contra Costa County residents differs from both the PCE and statewide incentives in several ways:

  • It’s an after-purchase rebate rather than an up-front incentive.
  • All county residents are eligible for a rebate with no income caps.
  • The rebate amounts are much lower: $150 standard rebate; $300 rebate for people living at or below 400% of the federal poverty level.
  • The funds are available throughout the year on a rolling basis rather than during a short application window.

“Part of our overall goal of 511 Contra Costa is to reduce vehicle trips,” says Kirsten Riker, Project Manager for Advanced Mobility Group, which manages transportation demand management programs for 511CC. “It’s not designed for social equity. It’s designed to get people into other modes. This is a little extra carrot.”

Riker also manages a second program, Charge Up, that offers $500 rebates. Funded by a half-cent sales tax through the Contra Costa Transportation Authority, that incentive has income caps, and only residents of specific communities within the county can qualify. If someone applies for the 511CC rebate and could qualify for the higher incentive, their application is automatically forwarded to this program. 

However, the primary goal of Riker’s work is reducing VMT and carbon emissions. “When we developed the program, we knew that you could go with a much higher amount and help fewer people,” Riker says. “We took the approach that less means more.”  

Since it rolled out in 2020, the 511CC program has given out $162,000 for 888 rebates, with 23% going to low-income residents. The Charge Up program has given 64 rebates since it started in 2022. 

The programs do extensive surveying to determine their effectiveness, and 90% of participants have responded. That data helps ensure that the e-bike rebates are achieving their goals. It will help local and statewide agencies deliver more effective e-bike programs in the future, with a report coming soon from a UC Davis researcher. For example, the 511CC initially had a price cap of $5,000 for eligible bikes, but now every e-bike qualifies for a rebate as long as it has pedals.

“$150 isn’t going to change the world,” Riker says, but she feels it creates “e-bike ambassadors” — people excited about riding who want to tell their friends and neighbors how stoked they are about their bikes. She adds, “For a lot of people, their e-bike has changed their life.” 

“I feel like there’s a tipping point. At some point, everybody’s going to buy an EV because you’re going to have to,” she says. She notes that over half the bikes at Bike to Work Day in Contra Costa County in 2022 were e-bikes. She feels like getting people to experience the joy of biking on an electric bike is a great way to get people who have never biked to ride. “We’re not going after bicyclists. We’re going after drivers,” she says.

How to get a 511CC or Charge Up e-bike rebate: Any Contra Costa County resident can get a $150 after-purchase rebate. If you live in an equity priority community within the county and meet the income qualifications, you can apply for a $500 Charge Up rebate.

Of course, there are other local e-bike purchase incentives available. If you have a qualifying car to trade in, you could get up to $7,500 from your local air quality management district. And stay tuned for more information about California’s statewide e-bike purchase incentive program.

https://www.calbike.org/wp-content/uploads/2021/04/e-bike-father-with-kids-scaled.jpeg 1707 2560 Laura McCamy https://www.calbike.org/wp-content/uploads/2018/07/calbike-logo.png Laura McCamy2023-01-17 15:39:152023-02-13 16:03:18Local E-Bike Incentives Provide More Options for Californians

E-Bike Incentives Report: November 30, 2022, CARB Work Group Meeting

January 9, 2023/by Laura McCamy

The California Air Resources Board held a work group meeting to continue its discussion of the parameters of the Electric Bicycle Incentives Project on November 30, 2022. Around 150 people attended the Zoom workshop, including representatives from the e-bike industry, bicycle shop owners, nonprofits who work with potential voucher recipients, bicycle coalition leaders, and members of the public interested in the program.

Here are some highlights from the meeting, plus information CalBike learned about e-bike purchase incentives after following up with CARB staff.

More funding for implementation

At the work group, CARB announced that it has another $3 million for the program in addition to the $10 million allocated by the legislature. Program staffers anticipate that the extra funding will help augment their outreach. Hopefully, the extra money will free up more of the $10 million for incentives rather than administrative expenses. CalBike applauds CARB for finding the extra funding and demonstrating that the agency understands the value of the e-bike incentive program.

Lowered income eligibility limits, more discussion of eligible bikes

CARB staff confirmed to CalBike that two parameters for the program have been finalized: the income eligibility limits and which classes of e-bikes will be eligible for incentives. 

In prior presentations, CARB proposed 400% of the federal poverty limit as the income cap for e-bike incentives. However, at the last work group, staff announced that the income limit will be lower: 300% of FPL to align the eligibility requirements for the e-bike program with those of other CARB clean vehicle programs, which will be lowered to 300% FPL in 2023.

In response to overwhelming support for allowing Class 3 e-bike models to be eligible for incentives, CARB will include all three classes of e-bikes in the program. However, manufacturers will have to apply for their models to be eligible for purchase with the vouchers. 

In response to concerns about maintenance, to ensure that people who receive the vouchers have support to keep their bikes in good repair, CARB proposed requiring a manufacturer’s warranty of at least two years. That would eliminate Rad Power Bikes, which makes some of the most affordable e-bikes on the market because it only offers a one-year warranty. Commenters noted that more expensive bikes tend to have longer warranties, which might put this requirement at odds with the equity goals of the program. 

A quick internet search found that many e-bike manufacturers offer a five-year warranty on the frame and fork and one year on other parts. Provisions to ensure bike quality and repairability will undoubtedly get further discussion at future work group meetings.

Next steps for California’s e-bike incentive program

CARB plans to hold another work group meeting in January to continue receiving input on program parameters. If you’re not already on CARB’s list and want to be notified about this and future e-bike meetings, sign up for CARB’s e-bike list. In the past, they sent meeting notifications to everyone interested in transportation electrification, but future notices will be sent only to the e-bike-specific list.

Of course, CalBike will also let you know about future e-bike meetings. You can sign up for our list at the bottom of this post.

Meeting presentation

Video of the 11/30/2022 meeting

https://www.calbike.org/wp-content/uploads/2023/01/EBIP-header.jpeg 581 1500 Laura McCamy https://www.calbike.org/wp-content/uploads/2018/07/calbike-logo.png Laura McCamy2023-01-09 18:15:242023-02-13 16:03:23E-Bike Incentives Report: November 30, 2022, CARB Work Group Meeting

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