One sentence summary – California legislators have adjusted state funding for new hydrogen filling stations due to insufficient demand, reducing the allocation from the Clean Transportation Program (CTP) to “no less than 15% annually” of the CTP funds, with a deadline of July 1, 2030, and half of the funding directed towards low-income communities; concerns have been raised about poor sales of fuel-cell electric vehicles (FCEVs) and the high cost of running hydrogen cars, leading to Shell closing five hydrogen filling stations and abandoning plans for 48 new stations.
At a glance
- California legislators have adjusted state funding for new hydrogen filling stations due to insufficient demand.
- The original bill proposed allocating $20 million from the Clean Transportation Program (CTP) for construction, but the funding has been reduced to “no less than 15% annually” of the CTP funds.
- The decision to reduce funding is based on reports by the California Energy Commission (CEC) and the California Air Resources Board (CARB) showing poor sales of fuel-cell electric vehicles (FCEVs) and concerns about stranded filling stations.
- Eloise Gómez Reyes, the lead author of the bill, initially sought a 10% reduction in annual funding, but a compromise was reached for a 15% reduction.
- Recent developments include Shell closing five hydrogen filling stations and the amendment allowing the CEC to establish an alternative schedule for funding rounds.
The details
California legislators have recently adjusted the state funding for new hydrogen filling stations.
The primary reason cited for this adjustment is insufficient demand.
The original bill, AB-126, proposed an allocation of $20 million from the Clean Transportation Program (CTP) for the construction of these stations.
However, a new amendment has reduced the funding to “no less than 15% annually” of the CTP funds.
This amendment also sets a deadline of July 1, 2030.
The decision to reduce funding
The decision to reduce funding comes from reports by the California Energy Commission (CEC) and the California Air Resources Board (CARB).
These reports indicate poor sales of fuel-cell electric vehicles (FCEVs) despite years of subsidizing hydrogen (H2) filling stations since 2004.
The report also raised concerns about the potential for publicly funded hydrogen filling stations to become stranded without new hydrogen FCEV models from automakers and limited driver adoption.
Eloise Gómez Reyes and the funding compromise
Eloise Gómez Reyes, the lead author of the bill, initially sought to decrease the annual funding to 10%.
However, a compromise was reached, resulting in the agreed-upon reduction of 15% annually.
Half of the funding must be directed towards benefiting low-income and disadvantaged communities.
One of the key factors discouraging the adoption of hydrogen cars and H2 fuel in the state is the high cost.
For example, running a Toyota Mirai is approximately 14 times more expensive than operating a Tesla Model 3.
Recent developments and the amendment
Recent developments have seen Shell closing five hydrogen filling stations and abandoning plans for 48 new stations due to political and economic uncertainties.
The amendment also allows the CEC to establish an alternative schedule for funding rounds.
The CTP was initiated in 2008 with the objective of installing a minimum of 100 publicly available hydrogen filling stations.
However, as of now, only 53 such stations are operational throughout California.
Each filling station constructed in the state has required $1.5 million in state funding.
The amendment replaces the previous requirement of “at least 100 publicly available hydrogen-fueling stations” with the need for “a sufficient network of hydrogen-fueling stations.”
This change reflects a shift toward ensuring a comprehensive and well-connected network to support the growing demand for hydrogen fuel.
Lastly, the CTP is scheduled to become inoperative on July 1, 2035, and will be repealed on January 1, 2036.
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A group of legislators discussing and adjusting funding allocations for hydrogen filling stations in California.
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| hydrogeninsight.com |
|---|
| – California legislators have reduced state funding for new hydrogen filling stations due to insufficient demand. |
| – Bill AB-126 originally allocated $20m from the Clean Transportation Program (CTP) for grants to build new hydrogen filling stations. – |
| The new amendment reduces the funding to “no less than 15% annually” of the CTP money and sets an end date of 1 July 2030. – |
| The California Energy Commission (CEC) and the California Air Resources Board (CARB) reported poor sales of fuel-cell electric vehicles (FCEVs) despite subsidizing H2 filling stations since 2004. – |
| The report warned that if automakers do not produce new hydrogen FCEV models and drivers do not embrace these vehicles, publicly funded hydrogen filling stations may become stranded. – |
| The bill’s lead author, Eloise Gómez Reyes, sought to reduce the annual funding to 10% but a compromise of 15% was reached. – Half of the funding must be used to benefit low-income and disadvantaged communities. – Hydrogen cars and H2 fuel are expensive in the state, with running a Toyota Mirai being almost 14 times more expensive than a Tesla Model 3. – |
| The bill allows the CEC to create an alternative schedule for funding rounds. – |
| The CTP was launched in 2008 with the goal of installing at least 100 publicly available hydrogen filling stations, but there are currently only 53 operating in California. – Shell closed five hydrogen filling stations last month and scrapped plans for 48 new stations due to political and economic uncertainty. – |
| Each filling station built in California has required $1.5m in state funding. – |
| The amendment replaces the wording about “at least 100 publicly available hydrogen-fueling stations” with “a sufficient network of hydrogen-fueling stations. |
| ” – |
| The CTP will become inoperative on 1 July 2035 and will be repealed on 1 January 2036. |
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