In California, the 2021 Budget Act committed $3.9 billion towards zero-emission vehicle (ZEV) acceleration through 2023-24. This included investments ranging from cleaning up drayage trucks, transit, and school buses to accelerating equitable electrification of passenger vehicles, e-bikes and rail—coupled with infrastructure and incentives for in-state manufacturing.

In his new budget proposal for 2022-23, California Governor Gavin Newsom is adding an additional $6.1 billion ($3.5 billion General Fund, $1.5 billion Proposition 98, $676 million Greenhouse Gas Reduction Fund, and $383 million Federal Funds) one-time over five years, with a focus on communities that are most impacted, bringing the total investment to $10 billion over six years to decarbonize the transportation sector.

The Budget proposes targeted investments in disadvantaged and low-income communities, including tribal communities, to increase access to the benefits of clean transportation and more than doubles the money targeted for heavy-duty market acceleration.

Significant investments include:

• Low-Income Zero-Emission Vehicles and Infrastructure: $256 million for low-income consumer purchases, and $900 million to expand affordable and convenient ZEV infrastructure access in low-income neighborhoods. These investments will focus on planning and deploying a range of charging options to support communities, including grid-friendly high-power fast chargers and at-home charging.

• Heavy-Duty Zero-Emission Vehicles and Supporting Infrastructure: $935 million to add 1,000 zero-emission short-haul (drayage) trucks and 1,700 zero-emission transit buses; $1.5 billion Proposition 98 to support school transportation programs, including advancing electric school buses in a coordinated effort between educational, air pollution, and energy agencies; $1.1 billion for zero-emission trucks, buses, and off-road equipment and fueling infrastructure; and $400 million to enable port electrification.

• Zero-Emission Mobility: $419 million to support sustainable community-based transportation equity projects that increase access to zero-emission mobility in low-income communities. This includes supporting clean mobility options, sustainable transportation and equity projects, and plans that have already been developed by communities that address mobility. These locally driven projects continue to be a direct response to critical mobility needs identified by community-based organizations and residents working on the front lines to lift up priority populations.

• Emerging Opportunities: $200 million to invest in demonstration and pilot projects in high carbon-emitting sectors, such as maritime, aviation, rail, and other off-road applications, as well as support for vehicle grid integration at scale. These investments will help maintain California’s role as the hub of ZEV market creation and innovation, creating economic development opportunities, while accelerating zero-emission solutions in hardest-to-reach segments of the transportation system.

Alongside the investments in zero-emission vehicles and infrastructure, the Budget includes $9.1 billion one-time General Fund and Bond funds over two years for transportation programs and projects that align with climate goals, advance public health and equity, and improve access to opportunity; further, the state will be competitively positioned to pursue significant federal investments from the Infrastructure Investment and Jobs Act (IIJA).

Significant investments include:

• Active Transportation: $750 million General Fund for projects to transform the state’s active transportation networks, improve equity, and support carbon-free transportation options, including funding for: Active Transportation Program projects, the Reconnecting Communities: Highways to Boulevards Pilot Program, and bicycle and pedestrian safety projects.>

• High-Speed Rail and Transit: $4.2 billion Proposition 1A bond funds for High-Speed Rail, $3.25 billion General Fund for statewide, regional and local transit and rail projects, and $500 million General Fund for high-priority rail safety improvements.

• Climate Adaption: $400 million General Fund for climate adaptation projects that support climate resiliency and reduce infrastructure risk.

The Budget is also proposing $380 million over two years to invest in long-duration storage projects, and $100 million in 2022-23 to advance the use and production of green hydrogen. According to the Budget, “Green hydrogen is critical to the decarbonization of California’s economy and achieving carbon neutrality.”