California Governor's Budget Supports EV, Hydrogen

The economic stimulus plan earmarks $1.5 billion for purchases as well as fuel infrastructure. 

January 08, 2021

SACRAMENTO—California Gov. Gavin Newsom’s 2021 proposed budget has $1.5 billion tucked into it to encourage individuals and corporations to purchase electric or hydrogen vehicles, CNBC reports. The money would also go toward maintenance and construction of fueling and charging infrastructure.

The proposal, which Newsom is slated to unveil today, also earmarked $300 million to maintenance and “greening” of the state’s infrastructure, plus OK’d installing EV charging stations at every state-owned facility. Such stations could be from ChargePoint, Electrify America, Tesla and Volta Charging. In September, Newsom banned the sales of new internal combustion engines in the state by 2035. Gasoline-powered vehicles still will be owned and sold as used cars.

Eleven new North American-built EVs soon will enter the domestic market, including Nissan Ariya and Volkswagen ID.4, as well as Tesla Model S, according to Sam Fiorani, AutoForecast Solutions vice president of global vehicle forecasting. “Most of the next-wave of electric vehicles will be crossovers, however the pickup wave is just beginning,” he said.

“Building on California’s historic commitment to requiring sales of all new passenger vehicles to be zero emission by 2035, this … proposal will support jobs and economic growth and provide air quality benefits and support for low-income Californians to purchase cleaner vehicles. Funds will support purchases of clean trucks, buses and off-road freight equipment and Clean Cars 4 All programs. It will also support job-creating construction of electric charging and hydrogen fueling stations necessary to accelerate zero-emission vehicle adoption,” read the governor’s announcement of his proposal.