Policy FYI: Governor Newsom Releases Revised Budget for Clean Transportation Programs
Policy Updates

Policy FYI: Governor Newsom Releases Revised Budget for Clean Transportation Programs

Policy FYI: Governor Newsom Releases Revised Budget for Clean Transportation Programs

Tuesday, May 18, 2021 / Meredith Alexander

CALSTART is excited to see Governor Gavin Newsom confirm his leadership on clean transportation and his ongoing commitment to electric vehicles in the proposed May revise budget, released on Friday.  Due to the Federal relief funds and the state’s projected budget surplus, California has an incredible one-time opportunity to make a major investment in programs that will dramatically reduce transportation emissions while creating economic development opportunities throughout the state.? 

Governor Newsom is proposing sustained program funding, which CALSTART has consistently emphasized is critical to speed the transformation of the transportation sector. ?Specifically, the governor is proposing over $1.2 billion for existing clean vehicle and equity programs through the California Air Resources Board, as well as $500 million for infrastructure programs from the California Energy Commission.  The governor is also acknowledging the importance of zero-emission truck and bus funding with a multi-year $1.4 billion investment. ?Further funding details are as follows:

Existing Programs

  • HVIP: $400M  (Jan. budget was $315M)
  • CVRP: $400M (over 3 years—Jan. budget was $0)
  • Equity programs: $400M (over 3 years—Jan. budget was $150M)

Additional Funding Allocations:

  • Drayage trucks & infrastructure ($470M)
  • Transit buses & infrastructure ($290M)
  • School buses & infrastructure ($450M)
  • Drayage pilots ($75M - designated for previously approved pilots)

While we will continue working to understand the mechanics of the Governor’s proposal, specifically the multi-year appropriations, CALSTART encourages our members to engage with your legislators, encouraging them to act quickly to adopt the Governor’s proposed budget while considering an additional appropriation for the clean vehicle rebate program. ? 

Clean vehicles require significant investments in infrastructure and a strong positive signal from government to encourage private investment, which is why we are also pleased to see the Governor calling for re-authorization of AB 8 programs and $500 million for clean infrastructure programs at the Energy Commission.? 

The current budget surplus creates opportunities to make smart investments that will pay huge dividends in cleaner air, improved mobility, and economic growth. Recent analysis suggests every dollar invested in California’s clean transportation and energy industry yields a seven-fold return resulting in increased state economic activity, jobs, and local economic activity. Clean transportation manufacturers and suppliers are choosing to locate in California because of our incentive programs. Analysis of the industry shows that California likely leads the nation in the total number of "green" vehicle technology companies, many of them small businesses.  

This budget provides critical funding to the state’s clean vehicle programs and will give assurance to manufacturers, suppliers, and services that there will be strong demand for the zero-emission vehicles they are bringing to market for the next three years. CALSTART looks forward to working with our members and legislative leaders to pass the strongest clean transportation and climate budget this state has ever seen.? Please stay tuned for opportunities to engage.