CEC approves $2.9 billion investment for zero-emission transportation infrastructure

For Immediate Release: December 14, 2022

The largest financing plan ever focuses on charging and refueling for clean trucks and buses

SACRAMENTO The California Energy Commission (CEC) today approved an unprecedented $2.9 billion investment plan that accelerates California’s electric vehicle (EV) charging goals for 2025 and hydrogen fueling. The funds will support the deployment of thousands of zero-emission trucks, school buses and transit buses to deliver clean air to communities hardest hit by the impacts of medium- and heavy-duty vehicle pollution.

The Update investment plan 2022-2023 increases funding for CEC’s Clean Transportation Program with 30 times compared to 2019 with a surcharge $2.4 billion from the recent state budget to be spent over the next four years, with at least 50% earmarked for priority populations. CEC staff estimate the plan will result in 90,000 new EV chargers in the state, more than double Installed 80,000 chargers today. Combined with funding from utilities and other programs, these investments are expected ensure that the state achieves its goal target to deploy 250,000 chargers by 2025.

This transformative investment will roll out charging and refueling infrastructure quickly and equitably to ensure drivers of zero-emission cars and trucks have the confidence to fill up anywhere, said CEC’s chief commissioner for transportation Patty Monahan. The plan will increase access to charging and hydrogen fueling for individuals, businesses and public entities, while supporting our emerging manufacturing ecosystem and creating jobs. Most importantly, it provides crucial funding to support the elimination of dirty trucks and buses that have overburdened our most vulnerable communities for too long.

Last month, the California Air Resources Board (CARB) an additional plan approved for $2.6 billion in clean transportation incentives, including rebates for consumer vehicles and investments in heavy-duty and off-road equipment. Both are generally part of Governor Gavin Newsoms California’s $54 billion climate pledge.

Giving all Californians the ability to charge zero-emission cars and ramping up infrastructure for truck and bus charging will set the stage for California’s necessary transition to a clean transportation system, said CARB chairman Liane Randolph. We look forward to working closely with our colleagues at the CEC as partners in this historic shift from fossil fuel cars to zero-emission vehicles to help clean the air, especially in communities suffering from persistent air pollution.

New infrastructure funding for zero-emission vehicles (ZEV) for 2022-2026

The plan approved today includes:

• $1.7 billion for medium and heavy ZEV infrastructure.
• $900 million for light electric vehicle charging infrastructure.
• $118 million for ZEV production.
• $90 million for hydrogen fueling infrastructure.
• $97 million for emerging opportunities such as aviation, locomotive, marine and vehicle network integration.
• $15 million zero and near-zero carbon fuel production and supply.
• $15 million for low-carbon fuels.
• $10 million for staff development.

Funds will become available over the next four years and be distributed to projects through a mix of competitive funding applications and direct funding agreements. Projects include direct incentive and rebate programs for individuals and businesses. The plan was developed through input from members of the Advisory Committee Clean Transport Programthe Advisory Group on Disadvantaged Communitiesthe state’s transportation and environmental agencies, the public and a wide range of stakeholders.

The Clean Transportation Program, created by Assembly Bill 118 in 2007 and reauthorized by Assembly Bill 8 in 2013, is one of the first transportation-focused funding efforts created to advance state climate policies. The program, now in its 14th year, has been a vital part of making California a leader in zero-emissions transportation, providing more than $1 billion to alternative fuel and vehicle technology projects that improve health, environmental and economic benefit communities. Funding for the program is expected to phase out by the end of December 2023.

California surpassedone million ZEV salesin 2021 and leads the country in all ZEV market metrics, including the highest level of government funding, the largest EV market share percentage and the most comprehensive public charging infrastructure. The success of the state programs has led to the creation of ZEVsa top exportand led to great progress in it manufacturing and job creation.

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About the California Energy Commission
The California Energy Commission is guiding the state towards a 100 percent clean energy future. It has seven core tasks: developing renewable energy, transforming transportation, increasing energy efficiency, investing in energy innovation, advancing state energy policies, certifying thermal power plants, and preparing for energy emergencies.