In late June 2021, Governor Gavin Newsom and the State Legislature passed their annual budget, including approximately $3.9 billion in investments to advance the transition to zero emission vehicles (ZEV). The funding will support investments throughout the transportation sector with the goal of reducing air pollution, improving public health and environmental justice, addressing the state’s climate targets, and supporting the local economy. The California Energy Commission ($1.165 billion with a primary focus on infrastructure and manufacturing), California Air Resources Board ($2.330 billion with a primary focus on vehicles), California State Transportation Agency ($407 million), and California Governor’s Office of Business and Economic Development ($5 million) will receive funds to support complementary investments to advance the critical transition to ZEVs. Programs include:
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$860 million to deploy heavy-duty zero-emission vehicles including 1,000 drayage trucks, 1,000 transit buses, and 1,000 school buses;
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$415 million for zero-emission infrastructure development to support the abovementioned drayage trucks, transit buses, and school buses;
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$525 million in consumer rebates for new light-duty ZEV vehicles;
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$500 million for vehicle rebates to support trucks, buses, and off-road equipment;
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$500 million for the California Energy Commission’s Clean Transportation Program focused on deploying ZEV charging infrastructure for all vehicle types;
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$400 million for equity-focused programs which support low-income Californians replace high-polluting vehicles; and
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$250 million to support local manufacturing of zero-emission vehicles, charging stations and infrastructure, and supply chain components.
This ZEV funding is on top of general transportation infrastructure, focused on improving streets, roads, and railways. For more information, please visit the California 2021-22 Budget website.