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Governor’s Budget Update Boosts California’s Clean Transportation and Advanced Energy Investments

Posted by Cayli Baker on May 14, 2021

Governor Newsom’s May budget revision doubles proposed funding to $3.2B for the state’s clean transportation programs, securing California’s role as a national leader in electrifying transportation. The revised budget also includes over $900 million to accelerate the state’s progress towards 100% clean energy.

SACRAMENTO, May 14, 2021 — Today, national business group Advanced Energy Economy (AEE) commended California Governor Gavin Newsom for his May budget revision, which increases proposed support for clean transportation and energy programs in the state. The proposed $3.2B clean transportation investments would focus dollars on a range of zero emission priorities including accelerating the transition of heavy-duty vehicles such as trucks and school buses to zero emission, providing multi-year funding support for light-duty incentives for low-income households to afford a ZEV, and expanding electric vehicle infrastructure buildout statewide. The revised budget also includes support for growing and attracting additional ZEV manufacturing to the state, a significant growth opportunity for California. Finally, the budget strategically invests in a suite of activities to accelerate renewable and advanced energy development to promote resilience and reliability.

“We commend Governor Newsom for doubling down on the state’s critical clean transportation programs in his May Revise and investing in key strategies to accelerate progress on the state’s clean energy goals. This investment will help the state attract additional private capital and expand California’s already robust advanced energy and transportation industry, leading to more jobs and economic activity in our local communities. We look forward to working with the Governor’s Office and Legislature to ensure California has a strong investment plan in place to accelerate the transition to a zero emission energy and transportation system. It is critical we put these dollars to work immediately and show direct benefit to the communities most impacted by heavy pollution,” said Amisha Rai, Managing Director at Advanced Energy Economy.

AEE’s recent Electrifying California report projects that California’s EV supply chain workforce will double by 2024. Currently, 55 of the state’s 58 counties host EV-related jobs, presenting a huge economic development opportunity across the state. An economic assessment conducted last year found that investment in advanced energy and transportation in California would yield a seven-fold return to the state’s economy, creating in-state jobs and local economic activity.

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Topics: State Policy, Press Releases