Ever since the federal government decided against including electric bikes in its broader electric vehicle incentive programs, alternative incentives at the local and state levels have largely succeeded—except, of course, in California. Unlike most other incentive programs in the U.S., California’s partially developed program has been in disarray for years with no clear launch date.
Here’s a breakdown of how California mishandled its state-sponsored electric bicycle incentive program.
The Initial Vision
Over two years ago, California aimed to launch a statewide e-bike incentive program designed to provide significant discounts to residents purchasing an electric bicycle. Policymakers recognized that investing in electric bicycle adoption has substantial benefits at a lower cost compared to electric vehicles.
The Execution Problem
While other cities and states have successfully launched programs that reduce e-bike prices by up to 50%, California’s program faced repeated delays and confusion. Allegations of severe mismanagement have plagued the initiative.
Melanie Curry from Streetsblog detailed the difficulties in getting clear answers from the program managers. According to staff at the California Air Resources Board (CARB), a soft launch occurred but was limited to just a few dozen people. It’s unclear where these e-bike vouchers went or how recipients were selected.
CARB staff claim that 80 applications were received during this soft launch, but there is no transparent process for how these applicants were chosen.
Funding and Administration Issues
With $10 million earmarked for the program still unspent after over two years, patience is running thin in The Golden State. Much of the problem appears to stem from issues with the program’s administrator, Pedal Ahead. Selected by CARB in 2022 amid raised eyebrows, Pedal Ahead proposed a different incentive program than what the state envisioned.
Pedal Ahead was chosen as the administrator in August 2022, but by then, delays had already pushed back the initial launch date from July 2022. Further complications arose in determining how vouchers would be distributed, what types of e-bikes would be eligible, and whether online retailers could participate.
Delays and Investigations
Repeated delays meant that each new launch date came and went without significant progress. By May 2024, staff lead Sam Gregor claimed that the launch would occur within several months. However, aside from a few dozen vouchers from a soft launch test with little public information, the program remains stalled.
The San Diego Union-Tribune reports that Pedal Ahead is now under investigation by the Department of Justice and CARB after receiving around $1 million in administrative costs. San Diego’s city-wide e-bike voucher program also administered by Pedal Ahead did not renew its contract with them, choosing instead to manage it internally.
Lack of Transparency
CARB has not officially commented on the investigation into Pedal Ahead. Both CARB and Pedal Ahead have been criticized for their lack of transparency, making it difficult to determine where the primary fault lies.
Despite these issues, CARB expects to distribute approximately 15,000 e-bike incentives from its initial funding allocation. However, around 20,000 people are already on CalBike’s list of interested parties. CalBike, unaffiliated with the incentive program, has been performing outreach to inform California residents about the program details.
Conclusion
While many cities and states have launched successful electric bicycle incentive programs, California’s mishandling of its initiative highlights significant administrative failures. This situation is not indicative of the overall success of government-sponsored e-bike programs nationwide, which have helped many people adopt more efficient and healthier transportation methods.
