California invests additional $2.6 billion in decarbonising transport

by Nov 25, 2022

California is in the eMobility news again, headlining once again with initiatives leading the global clean transportation market. The state governor had announced in January this year about an increase in investments bring the total eMobility investment to $10 billion.

The US state has invested an additional $6.1 billion in electric vehicles and infrastructure bringing the total budget for this area to $10 billion.

The new package built on a $15 billion investment package signed in September 2021, which included $3.9 billion for e-mobility projects. This was the first California-wide effort to fully transition the automotive industry to electric vehicles by 2035.

Specifically, $256 million was to go towards the purchase of vehicles for low-income households and $900 million for the development of affordable ZEV infrastructure in low-income neighbourhoods. $935 million were targeted for 1,000 zero-emission short-haul trucks and 1,700 zero-emission transit buses, and $1.5 billion was aimed to be invested to support school transport programmes. $1.1 billion was to go towards zero-emission trucks, buses and off-road equipment and refuelling infrastructure, and another $400 million to electrify ports.

Sustainable community-based transport projects to improve access to zero-emission mobility in low-income communities was to be used to support with $419 million with $200 million earmarked for pilot projects in high-carbon sectors such as shipping, aviation, rail and other off-road applications, as well as support for large-scale vehicle grid integration.

Recently, the California Air Resources Board (CARB) has approved a $2.6 billion investment plan for the state’s transition to zero-emission transportation. The projects that have been supported range from incentives for cleaner trucks and buses and mobility options such as bike- and car-sharing to consumer rebates for clean cars.

The investment in clean transport amounts to $2.2 billion for clean trucks and buses, as well as off-road equipment, and $381 million for clean transportation equity projects. In both cases, CARB has said it has focussed on underserved communities, including low-income communities and those disproportionately burdened by environmental pollution, as well as small truck fleets. The new program of projects includes subsidies for low-income consumers to purchase electric cars with up to $15,000 in incentives without having to scrap an older vehicle and $19,500 when an old car can be scrapped, which is an increase of $3000 in comparison to the current incentive levels. At the same time, $60 million has been set aside for cleaner commercial harbour craft.

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