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AB 674

Clean Cars 4 All Program.

2025-2026 Regular Session Introduced by Damon Connolly and 1 co-sponsor

Expands Clean Cars 4 All to prioritize retiring pre-2004/20+-year vehicles in low-income, disadvantaged communities, expanding statewide access with means-based incentives.

In committee: Held under submission.
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Bill Summary · AB 674

AB 674 — Clean Cars 4 All Program (Connolly) — Summary

Status: In committee; held under submission (last action 2025‑05‑23)
Introduced: February 14, 2025

Purpose / Intent

AB 674 amends the Clean Cars 4 All Program (administered by the California Air Resources Board, “state board”) to improve equity and effectiveness in retiring high‑polluting vehicles and expanding clean mobility options. The bill directs program rules, funding allocation, outreach, and prioritization to focus on low‑income and disadvantaged communities and areas with high concentrations of older, high‑emitting vehicles.

Key provisions

  • Geographic access and administration
    • Requires implementing regulations to ensure program incentives are available in all areas of the state.
    • Where a local air district has not elected to participate in managing incentive distribution, the state board must manage distribution to eligible residents in that area.
  • Program goals and prioritization
    • Adds a specific annual goal: prioritize vehicle retirement in areas with the highest percentage of residents in disadvantaged/low‑income communities and the highest numbers of vehicles manufactured before 2004 (or at least 20 years old).
    • Requires the state board to update Clean Cars 4 All guidelines no later than July 1, 2027.
  • Performance reporting and outreach evaluation
    • Expands the state board’s required annual performance analysis to evaluate funding for targeted outreach in low‑income/disadvantaged communities that have the highest numbers of pre‑2004/20+‑year vehicles.
  • Funding allocation metrics
    • When allocating funds to participating local air districts and the statewide portion, the state board must consider additional metrics: total value of vouchers deployed and a specified metric for retired vehicles.
    • Removes the previous requirement to consider population in eligible ZIP Codes as an allocation metric.
  • Means‑based strategy and incentives
    • Requires the state board, in coordination with local air districts and community organizations, to establish a means‑based strategy to identify potential recipients who meet specified criteria and provide increased incentives to those individuals.
  • Coordination and outreach
    • Directs improved coordination with programs receiving Greenhouse Gas Reduction Fund moneys and with local nonprofit/community organizations; prioritizes organizations with strong local presence to identify barriers and develop outreach protocols.

Who is affected

  • State Air Resources Board (new responsibilities for statewide distribution and reporting)
  • Local air districts (participation decisions affect whether they manage local distribution)
  • Low‑income and disadvantaged residents, especially in areas with many pre‑2004/20+‑year vehicles
  • Vehicle owners of older, high‑polluting passenger vehicles and light/medium‑duty trucks
  • Local nonprofits and community organizations involved in outreach and enrollment

Procedural / fiscal notes

  • Digest indicates no state appropriation required by the bill.
  • Legislative history: Referred to Transportation and Natural Resources; passed those committees (unanimous), re‑referred to Assembly Appropriations where it was placed on the suspense file and ultimately held under submission (05‑23‑2025).
  • Deadline for program guideline update: July 1, 2027.
  • The state board must continue annual public performance postings with the expanded evaluation elements.

Potential impacts (summary)

  • Expands geographic reach and centralizes backup administration where local districts opt out, likely increasing access in underserved areas.
  • Shifts allocation toward measures of actual voucher use and vehicle retirement rather than ZIP Code population, potentially directing more funding to places with greater program uptake or concentrations of old vehicles.
  • Establishes a formal means‑based targeting mechanism to increase incentives for lower‑income eligible participants, with the goal of prioritizing equity and emissions reductions in the most burdened communities.

Compiled from official sources — confirm details with the bill’s official record.

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