The California Air Resources Board is getting close to finalizing details of its electric bicycle incentive program, a $13 million initiative expected to launch in early 2023.

The program will be geared toward low-income participants. CARB is considering an eligibility cap of 300% of the federal poverty level (FPL). In 2022, 300% of the FPL is $40,770 for a one-person household, $54,930 for a family of two, or $83,250 for a family of four.

The amount of the e-bike purchase incentive has yet to be decided, CARB staff said during a workshop on the program last week. Participants in previous workshops said a rebate of $750 to $1,000 would be enough to encourage an e-bike purchase.

Larger incentives might be offered to residents of disadvantaged communities or those whose income is less than 225% of the federal poverty level. Bigger rebates might also be available to buyers of specialized bikes, such as cargo bikes or adaptive bicycles for special-needs riders.

CARB is looking at setting aside half the program’s funding for people whose income is less than 225% of the FPL and those living in disadvantaged communities. Applications from those groups would be processed first.

The agency expects to start offering incentives in the first quarter of 2023.

Despite limiting the incentive to low-income applicants, CARB staff said they’re expecting strong demand.

“We already know this program is going to be super successful,” said Aria Berliner from CARB’s Advanced Transportation Incentive Strategies Section. “There is so much interest.”

An Alternative to Cars

E-bikes are viewed as an ideal alternative to cars for trips around town. By encouraging e-bike adoption, CARB aims to support active transportation, reduce miles traveled by car and cut greenhouse gas emissions.

California’s e-bike incentive program received a $10 million allocation from the 2021/22 state budget. (See Calif. Program to Provide $10M in E-bike Incentives.) Last month, the CARB board voted to increase program funding to $13 million.

Following a competitive solicitation, CARB selected San Diego-based Pedal Ahead to administer the e-bike incentive program. The nonprofit started work on the project on Dec. 1.

CARB has held a series of workshops to help decide program details. The agency discarded an earlier proposal to exclude Class 3 e-bikes from the incentive program. CARB’s concern was that the Class 3 bikes, which reach speeds of 28 mph, could be a danger to pedestrians or other cyclists.

But Class 3 has become the most popular type of e-bike, workshop participants said, and the bikes are useful to riders making longer trips.

Another issue that’s been debated is whether incentives can be used at online retailers, or brick-and-mortar stores only. Under CARB’s current proposal, eligible purchase locations would include local bike shops and online retailers with a presence in California — either a physical store, company headquarters or a manufacturing site.

CARB is also looking at requiring eligible bikes to come with a two-year warranty at no additional cost. Another idea is to offer incentives for safety equipment such as bike locks, lights, helmets and safety vests. Some workshop participants said eligible bikes should come equipped with front and back lights.

Other workshop participants said CARB should also offer financing for e-bike purchases. According to the California Bicycle Coalition (CalBike), e-bikes that are safe and have “respectable durability” cost $2,000 and up.

CARB plans to hold another workshop on the e-bike program early next year, with discussion focused on incentive amounts, safety gear subsidies and e-bike cost limits.

Other Incentives

In crafting its e-bike incentive program, CARB is looking at e-bike incentives available in areas such as San Mateo County, Calif., Denver and British Columbia.

The city of Denver this year started an e-bike rebate program with a standard rebate of $400 and a $1,200 rebate for low-income residents. E-cargo bikes are eligible for an extra $500.

As of late October, 4,401 e-bike vouchers had been redeemed, the city said. The program was paused because funding ran out, but it’s expected to return next year.

Pedal Ahead runs an e-bike program in San Diego County that prioritizes low-income applicants. The program loans e-bikes to participants, who are asked to ride at least 150 miles per month and use an app to collect trip data. Participants who meet the requirements for two years may then keep the bike.

This year, Pedal Ahead announced a partnership with the San Diego Association of Governments to bring the program to another 125 participants.