CA Governor’s Budget Reduces Funding for Clean Transportation

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January 10, 2020
Contact: John Boesel
O: (626)744-5607
jboesel@calstart.org

Industry Group Pledges to Re-Double Efforts to Work with Governor and Legislature to Boost Investments

(Sacramento) Under the budget issued by California Governor Newsom today, the State of California will reduce its investments in cleaner cars, trucks, and buses. The budget would significantly cut the amount of funding for zero emission vehicle purchase incentives and advanced pilot and demonstration projects.

CALSTART and many other leading environmental groups believe that investments in clean transportation are the most effective for aggressively reducing California’s GHG emissions today and improving public health. The transportation sector is still not on track to meet its share of the state’s 2030 GHG emissions goals. Achieving the state’s2030 climate goals will require significant transformation of all aspects of transportation.

The Governor’s proposed 2020-21 budget reduces funding for the state’s electric vehicle rebate program from $200 million to $125 million. Funding for zero- and near-zero emission trucks and buses was $188 million in the current year budget would be reduced to $140 million under Governor Newsom’s budget.

“Without a federal partner and regulations, California should be significantly increasing its funding for zero and near-zero emission vehicles. Boosting funding for this sector will not only ensure California remains a climate leader but it will also boost manufacturing jobs in the state and clean the air in disadvantaged communities said CALSTART President and CEO, John Boesel.

California is currently leading the nation in terms of producing zero emission cars, trucks, and buses by an order of magnitude. By employment numbers, Tesla is the largest manufacturer in the state. More than five companies are currently producing zero emission trucks and buses in California.

The governor’s budget proposes creating a $1 billion “Climate Catalyst” fund over the next 5 years. “We applaud Governor Newsom for announcing the creation of a ‘climate catalyst’ fund, and we urge the Governor and the Legislator to use this fund to create long-term investment commitments for clean transportation programs, especially for vehicle incentive programs with proven emissions benefits. Keeping investments in cutting-edge technologies on course requires strong, consistent, long-term market signals from California’s leadership. Most CALSTART’s members already have access to low-interest financing,” said Boesel.

“We will double down on our efforts to work with the Governor and his team. We also urge the legislature to develop a budget that will result in the necessary progress on reducing GHGs and unhealthy pollutants from the transportation sector in the next 5-10 years. We are hopeful we will see better numbers in the final budget adopted in June,” said Boesel.


CALSTART is a national nonprofit consortium with offices in New York, Michigan, Colorado and California, CALSTART partners with its more than 240 member companies and agency innovators to build a prosperous, efficient and clean high-tech transportation industry. CALSTART knocks down barriers to modernization and the adoption of clean vehicles. CALSTART is changing transportation for good.