California Invests $1.4B to Boost EV and Hydrogen Infrastructure
The California Energy Commission (CEC) closed out 2024 by approving a $1.4 billion plan for investing in infrastructure for zero-emission vehicles (ZEVs). The budget announcement marks a noteworthy step toward decarbonizing the state’s economy.
The investments will be managed through California’s Clean Transportation Program, which has a spending budget of $95.2 million. The plan’s additional $1.3 billion comes from the state’s Greenhouse Gas Reduction Fund (GGRF).
The CEC plans to direct these funds toward developing hydrogen (H2) refueling stations and electric vehicle (EV) chargers over a four year span. This historic investment in clean transportation reflects California’s ongoing pursuit of carbon neutrality.
The Clean Transportation Program’s big new budget is just the start of a broader initiative—the California Climate Commitment.
Understanding the Clean Transportation Program
Overseen by the CEC, the Clean Transportation Program program has allocated $2.3 billion toward furthering infrastructural and technological developments in alternative fueling and ZEVs. This program abides by several overarching goals, including:
- Achieving a carbon-neutral economy by 2045.
- Making ZEVs represent 100% of new passenger vehicle sales.
- Transitioning 100% of light-, medium-, and heavy-duty trucks to feasible zero-emission alternatives.
The CEC program’s newest spending plan is primarily funded by a $1.3 billion investment through the California Climate Commitment—the state’s overarching plan to replace fossil fuels with clean alternatives.
Several of the commitment’s goals overlap closely with those of the Clean Transportation Program, such as:
- Reducing air pollution by 71%.
- Cutting fossil fuel consumption by 86%.
- Lowering greenhouse gas (GHG) emissions by 85%.
- Saving $200 billion in long-term pollution-related healthcare costs.
The California Climate Commitment is world-leading by nature of its $48 billion budget and wide-reaching approach to promoting clean energy. Investing in the Clean Transportation Program furthered the commitment’s broader goals of allocating $10 billion to ZEV technology and infrastructure development.
This background helps explain the reasoning behind the generous funding, but what exactly is the $1.4 billion plan?
Key Investment Plan Highlights
The CEC outlined a four-year plan to invest its base budget and $1.3 billion stimulus across multiple transportation sectors. Additionally, at least 50% of spending will be dedicated to disadvantaged and low-income communities.
The investment strategy is described in a 73-page docket, summarized below for your convenience:
Fiscal Year 1 (2024-2025)
Because GGRF funding is expected to require lengthy processing, year one is only budgeted for the Clean Transportation Program’s standard annual funding of $95.2 million.
Here’s how the program will spend its standard allotment:
- $2 million for workforce training and development.
- $40 million for light-duty EV charging infrastructure.
- $38.2 million for medium- and heavy-duty ZEV infrastructure.
- $15 million for light-, medium-, and heavy-duty hydrogen refueling.
Fiscal Year 2 (2025-2026)
Here’s where GGRF funding from the California Climate Commitment is first expected to kick in. The Clean Transportation Program’s base spending during year two is assumed to be the same as outlined in year one. An additional $510 million in funding will go to:
- At-home EV charging grants.
- Light-duty EV charging stations.
- Electric school bus infrastructure.
- ZEV infrastructure for trucks, buses, and off-road equipment.
Collectively, these investments will carry more than five times the spending power of the program’s typical budget.
Fiscal Year 3 (2026-2027)
Spending in most categories decreases during year three.
The notable exception is port ZEV infrastructure, which has $130 million dedicated to it exclusively and another $49 million for drayage trucks.
Fiscal Year 4 (2027-2028)
Year four carries some of the heaviest spending of the plan.
The biggest budget items include:
- $219 million for light-duty EV charging.
- $80 million for at-home charging grant initiatives.
- $137 million for clean truck, bus, and off-road equipment infrastructure.
When the four-year plan is complete, over 17,000 new light-duty EV charging stations are expected to be added, pushing the state total to 250,000.
California’s Leadership in Zero-Emission Vehicles (ZEVs)
The Golden State’s dedicated history of advancing clean and renewable energy dates back decades. From consistent innovations in hydrogen hub technology to pursuing zero-emission goals in hard-to-abate sectors—California outpaces its fellow states and most of the world in green technology.
Much of California’s success in sustainability can be attributed to its comprehensive policy action surrounding GHGs and climate change. The state makes cutting carbon and pursuing alternative fuel technology a high priority, and its advancements in these areas have shown results proportional to these efforts.
The CEC’s Lead Commissioner for Transportation, Patty Monahan, said the new investment plan “reaffirms California’s commitment to funding zero-emission refueling infrastructure” and “prioritizes clean air benefits in low-income and disadvantaged communities that need it the most.”
Research has shown that low-income residents are more likely to live in areas with heavy industry and suffer the greatest exposure to harmful pollutants. California’s climate initiatives have consistently put these disproportionate effects at the forefront of their decarbonization strategy.
California is also among the world’s most dedicated proponents of hydrogen energy infrastructure, a gap that will only widen as its spending on ZEV technology increases.
With some of the most ambitious commitments made to cutting carbon for good, the state continues building models for others to decarbonize their systems.
The Role of FASTECH in California’s Clean Energy Transition
Advancing EV and hydrogen fuel cell adoption are crucial points in virtually every net-zero roadmap. Combined, electrification and hydrogen energy stand to transform virtually all mobility sectors.
FASTECH’s energy expertise has played a significant role in expanding California’s clean energy infrastructure.
Notable Golden State achievements include:
- Development of a groundbreaking tri-generation power plant at the Port of Long Beach
- Replacing conventional natural gas with renewable biogas solutions
- Launch of renewable energy truck stop in Tulare
- Construction of over 35 hydrogen stations
FASTECH’s leading experience in clean energy EPC+M has been proven time and again statewide. However, much work remains before California and the collective U.S. can achieve carbon neutrality.
Don’t wait to join the clean energy movement. Reach out today to discuss your pathway to sustainable energy.