For Buyers, EV Incentives Are a Godsend — and a Head Scratcher

Zac Estrada

Zac Estrada is a reporter covering transportation, technology and policy. A former reporter for The Verge and Jalopnik, his work has also appeared in Automobile Magazine, Autoweek, Pacific Standard, Boston.com and BLAC Detroit. A native of Southern California, he is a graduate of Northeastern University in Boston. You can find him on Twitter at @zacestrada.

For Buyers, EV Incentives Are a Godsend — and a Head Scratcher
Image by Ian Hurley

Los Angeles provides one of the best models for creating incentives to encourage people to buy electric cars — even if those various programs and qualifications can be confusing to navigate.


Nationally, the electric vehicle (EV) sector is growing at a rapid clip. President Biden continues his efforts to add electric vehicle chargers across the country and speed up EV adoption, and a number of new electric vehicles are coming to market in the near future, with established automakers like General Motors, Honda and Volvo setting deadlines to go all-electric. Meanwhile, startups like Fisker, Lucid and Rivian are slated to start delivering vehicles to reservation holders over the next year, and Tesla continues to report sales gains every quarter.

The push for EV is especially strong in California, where Governor Gavin Newsom signed an executive order last year banning the sale of new cars with internal combustion engines by 2035.

Among the most significant barriers to EV is price; even Elon Musk admits the vehicles have to come down in price before they'll see widespread adoption. Yet while electric cars have considerably higher price tags than comparable gasoline-powered models, a slew of manufacturer incentives and government subsidies have helped offset the cost.

"Some states have a more welcoming approach, while others only complicate the matter and make it harder for consumers to make the switch," said Robby DeGraff, an auto industry analyst for automotive marketing research firm AutoPacific. "There's a lot of work that needs to be done by the Biden administration and thankfully there's ambition for change to happen."

electric vehicles Photo by Michael Fousert on Unsplash

Southern California residents — especially those living in L.A. — are best positioned to take advantage of existing rebates and incentives. In addition to the maximum $1,500 California Clean Fuel Reward and $7,500 maximum federal EV tax credit, L.A. residents can get a $500 rebate toward the purchase of a Level 2 EV home charger through the the Los Angeles Department of Water and Power (LADWP), which replenishes a battery pack far more quickly than a standard 120-volt household outlet. LADWP also kicks in an additional $250 if EV owners install a separate meter for the vehicle charger — an offer that takes advantage of a discounted electricity rate of 2.5 cents per kilowatt hour on base period charging. That period runs on weekends and between 8 PM and 10 AM on weekdays.

"There are a number of barriers to adopting electric vehicle technology, including affordability," said Kianiwai Jones, LADWP's assistant supervisor of electric transportation programs. "More incentives at every level will be key to adoption."

As far as Jones can see, people seem to be latching onto the incentive programs. She says she fields fewer questions from customers concerned about the cost of a home charger than in years past.

But the learning curve around charging still exists, Jones says, particularly when it comes to managing power usage during peak hours. "You charge based on what you need, and not as fast and as quick as possible," Jones said. "If you're going to charge overnight and you have 8 to 10 hours, it's going to impact your bill differently. If you increase your electric usage, you're going to increase your bill. But that's offset by the fact that you're not using gasoline."

LADWP offers a $1,500 rebate towards the purchase of an EV between 2 and 8 years old. (Some used EVs can be a bargain on their own: A five-year-old Nissan Leaf, for example, can cost under $10,000.) Applicants don't have to have utility bills in their name, but must prove they live in the utility's coverage area and use the service.

"We're very focused on equity, not only to increase (EV) adoption in general, but so that low-income and disadvantaged residents have access," Jones said. "The used EV market is the more affordable market and we want to promote that further."

LADWP customers have taken notice of the used EV rebate program, with 1,106 participants in 2020 versus just 634 in 2019.

The Los Angeles Department of Water and Power building

Used EVs have some limitations, the first of which being that these older EVs were originally designed to go around 100 miles on a full charge, not the 200-plus that's rapidly becoming the perceived minimum. And the batteries aren't new, either.

"Battery degradation has been and will continue to be somewhat of a concern for used EVs, but then again not everyone needs 200-300 miles of range, especially if you have a home charger," DeGraff said. Electric cars have historically counted for barely 1% of all vehicles in the U.S., so the pool of used examples is vastly smaller than that of conventionally powered cars.

But there's a potential downside to EV buyers' wide range of subsidy options: With all of the different agencies offering different programs, customers may find themselves in a maze of qualifications.

Electric cars from General Motors and Tesla no longer qualify for the $7,500 federal tax credit because those automakers have reached the 200,000-unit cap for that incentive. Nissan, which will add the electric-only Ariya SUV to its lineup next year, is likely to hit that ceiling next.

The GREEN Act, introduced in Congress in February by California Rep. Mike Thompson (D-St. Helena) would lower the tax credit to a $7,000 maximum but raise the cap to 600,000 cars. But there hasn't been movement on the bill since it was introduced. President Biden also wants to give direct rebates to EV customers, but that's also stuck as part of his $2.25 trillion infrastructure plan.

In California, the incentive of up to $2,000 under the Clean Vehicle Rebate Project has been exhausted as of April 23 and a waitlist has opened up until the state Legislature decides what to do with it. It's effectively been replaced by the California Clean Fuel Reward, with a rebate of up to $1,500 for any new plug-in vehicle. (The California Clean Fuel Reward grants a rebate at the point of purchase and allows the buyer to apply the rebate upfront, rather than issuing the rebate weeks later—as most programs do.)

The LADWP home charger program was set to expire this month and the used EV incentive next year, but Jones says both programs are expected to be renewed. LADWP's board of water and power commissioners has given the go-ahead to the agency to fund the programs until 2028 or until they're no longer deemed necessary.

The utility company programs are also funded with assistance from the California Air Resources Board and its low-carbon fuel standard and cap-and-trade programs. CARB currently runs the Clean Cars 4 All program that offers low-to-middle income residents in various counties including Los Angeles County up to $9,500 to scrap their qualifying gasoline vehicle and replace it with an EV. The Clean Vehicle Assistance Program offers those customers grants of as much as $5,000 and lower finance rates towards the purchase of a plug-in vehicle. But CARB anticipates those programs will run out of funding by July without indication they will be renewed.

Jones says LADWP has worked with Plug In America, a nonprofit group advocating electric vehicles, to help consumers and dealers navigate the qualifications for the various incentives before any sale of a vehicle is completed. Dealers around LADWP's service area can become certified as EV experts to better inform customers looking to purchase a plug-in vehicle.

"Understanding your specific situation and your behavior is going to be important," Jones said. "We do have people who are ready and willing to help the customers. It's just a smart way to reduce the impact."

Lead illustratio by Ian Hurley.

🍵☕️Top 6 Coffee Alternatives for Enhanced Productivity

In the fast-paced world of startups and venture capital in Los Angeles, maintaining peak productivity is essential for founders and investors alike. As the hustle intensifies, many are seeking alternatives to traditional coffee that not only provide a sustained energy boost but also support overall health and well-being. The following list highlights some of the top-rated coffee alternatives that can enhance focus and productivity while minimizing the adverse effects of caffeine. These options incorporate adaptogens, superfoods, and gut-friendly ingredients, making them ideal choices for those looking to optimize their performance without the afternoon crash.


Matcha

Image Source: Jade Leaf Matcha

Matcha is a finely ground green tea that offers a moderate amount of caffeine, along with L-theanine, which promotes relaxation without drowsiness. This combination can enhance focus and concentration, making matcha a suitable alternative for those looking to boost productivity without the jitters of coffee.

Popular Brands: ReNude Chaga Matcha (60 mg caffeine), Golde Pure Matcha (60 mg caffeine), Organic Ceremonial Matcha - Teahouse Edition (30 mg caffeine)


Dandelion Root Coffee

Image Source: Amazon

Dandelion root coffee is a caffeine-free alternative that mimics the taste of coffee. It is known for its potential to support liver health and digestion, which can contribute to overall well-being and productivity. The drink can help avoid the acidity and jitters that often accompany regular coffee, making it a gentler option for those sensitive to caffeine.

Popular Brands: Dandy Blend (0 mg caffeine), Teeccino Dandelion Dark Roast (0 mg caffeine)


Adaptogenic Drinks

Image Source: MUD\WTR Masala Chai

Adaptogenic beverages, which include ingredients like ashwagandha, reishi, and maca, are designed to help the body adapt to stress and promote mental clarity. These drinks can provide a sustained energy boost without the crash, supporting productivity throughout the day. They are often made with superfoods and spices that enhance both physical and mental performance.

Popular Brands: MUD\WTR Masala Chai (35 mg caffeine), Four Sigmatic Think Coffee (150 mg caffeine), ReNude Chagaccino (0 mg caffeine)


Golden Milk (Turmeric Latte)

Image Source: Golde

Golden milk, made from turmeric, ginger, and milk (or a milk alternative), is a caffeine-free option that can improve mood and reduce inflammation. The calming properties of this drink can help maintain focus and clarity, making it a great addition to a productive morning routine.

Popular Brands: Golde Turmeric Latte Blend (0 mg caffeine), Blume Turmeric Blend (0 mg caffeine), Four Sigmatic Golden Latte Mix (0 mg caffeine)



Chicory Root Coffee

Image Source: Teeccino

Chicory root coffee is an excellent alternative that satisfies the desire for a warm beverage without caffeine. It is rich in inulin, a prebiotic fiber that aids in digestion and promotes gut health by supporting beneficial bacteria. Chicory coffee has a nutty, earthy flavor and can help control blood sugar levels, contributing to overall energy and productivity throughout the day.

Popular Brands: Anthony’s Instant Chicory Root (0 mg caffeine), Teeccino Chicory Coffee Alternative (0 mg caffeine)


Yerba Mate

Image Source: Guayaki Yerba Mate

Yerba mate is a traditional South American herbal tea made from the leaves of the Ilex paraguariensis plant. It contains about 40-80 mg of caffeine per serving, which is less than a standard cup of coffee but enough to provide a gentle energy boost. Yerba mate is rich in antioxidants, vitamins, and minerals, and users often report feeling energized without the jitters or crashes associated with coffee. It has a unique, slightly bitter flavor and can be enjoyed in various forms, including loose-leaf tea and pre-brewed options.

Popular Brands: Guayaki Yerba Mate (40-150 mg caffeine)


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LA’s Data Center Supply Crunch

🔦 Spotlight

Happy Friday Los Angeles!

The Los Angeles data center market is experiencing a significant supply crunch, ranking 12th in growth among top markets since 2020 with only 265 megawatts of colocation inventory (data centers where businesses rent space to store their computing hardware and servers). Despite this, demand is surging, driven by AI, cloud, and hyperscaler needs, with AI accounting for 20% of new data center demand nationally. This scarcity is creating a highly competitive environment, with vacancy rates at a record low 3% and asking rents rising 13-37% year-over-year. For Los Angeles, this presents both challenges and opportunities in the big picture. The city's strategic position as a global entertainment hub and its connectivity to international markets through subsea cables make it an attractive location for data centers. However, the limited inventory and rising costs could potentially hinder growth and innovation in the tech sector. To maintain its competitive edge, Los Angeles will need to address these constraints through new developments, such as GI Partners' 16 MW addition at One Wilshire, and by focusing on high-connectivity, high-power capacity submarkets. The city's tech community should prepare for a landscape of increased competition for quality data center space, higher costs, and the need for innovative solutions to meet growing demand, particularly in AI and cloud services. While Los Angeles faces a challenging data center supply crunch, its strategic advantages and ongoing developments offer a promising path forward.


🤝 Venture Deals

LA Companies

  • Daisy, a one-year-old startup that designs and installs smart home and office technology systems, raised a $7M Series B co-led by Goldcrest and Bungalow, with previous investors Bullish and Burst Capital also stepping up. The company has raised a total of $13.3 million. - learn more

LA Venture Funds


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    🌐Decentralizing Data & Vacations: Sony's Web3 Leap and Sensible Weather's KOA Partnership

    🔦 Spotlight

    Happy Long Weekend Los Angeles!

    Sony Group is making a significant push into the blockchain and Web3 space, leveraging its Sony Pictures and Sony Music divisions along with a new global incubator. The company has developed the Soneium blockchain through Sony Block Solutions Labs, a joint venture aimed at accelerating Web3 innovation. Sony is launching the "Soneium Minato" public testnet and a developer incubation program called "Soneium Spark" to foster ecosystem growth and adoption. The initiative includes strategic partnerships with Web3 companies such as Astar Network, Circle, and Optimism. Sony aims to create a fan community centered on creators and connect diverse values through Soneium, with the ultimate goal of integrating Web3 services into people's daily lives. While the company acknowledges the challenges faced by Web3, including limited user adoption and the need for mainstream use cases, it remains committed to decentralizing the concentrated power of the current internet landscape.

    In completely unrelated and more digestible news Sensible Weather, a leading weather protection provider that we’ve featured many times, has partnered with Kampgrounds of America (KOA) to offer Weather Guarantees at over 450 KOA Campgrounds across the United States. This collaboration allows campers to purchase weather protection for their outdoor experiences, providing peace of mind and potential reimbursements of up to 100% of their nightly rate if weather conditions exceed predefined parameters. The partnership comes at an opportune time, as camping has seen a significant increase in popularity, with active campers growing by 68% over the past decade. If you are looking to do some camping this fall make sure you look into Sensible Weather protections to ensure that unpredictable weather won't dampen (nailed it) your camping experience.


    🤝 Venture Deals

    LA Companies

    • Space and Time, a blockchain data warehouse developer, raised a $20M Series A led by Framework Ventures. - learn more
    • Miris, a provider of spatial content streaming solutions, raised a $26M Seed Round led by IAG Capital Partners. - learn more

    LA Venture Funds

    • Fika Ventures led a $4.55M Seed Round for Revenew, a San Francisco startup that aims to help digital platforms and marketplaces manage their payments and optimize financial operations. - learn more
    • Bonfire Ventures participated in a $25M Series A for Supio, an AI platform for personal injury law firms. - learn more
    • Amplify LA participated in a $2M Seed Round for Pryzm, a startup that provides tools and data to help businesses navigate government contracting more efficiently. - learn more

      ✨ Featured Event ✨

      LA TECH CEO SUMMIT

      LA’s tech leadership is set to reunite after a long break! This two day summit will focus on building strong connections, sharing insights, and fortifying the local tech community.

      Learn More Here

      Register Here


      Download the dot.LA App

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