Newsom Proposes $3.2B EV Investment in California

California Invests $3.2 Billion in Electric Vehicle Expansion

California Governor Gavin Newsom unveiled a new initiative on Friday, allocating $3.2 billion to accelerate the adoption of electric vehicles (EVs) and expand the state’s EV infrastructure.

Governor Newsom’s Announcement

Newsom emphasized the significance of this investment during a press conference. He stated that California is proactively addressing EV expansion, rather than awaiting federal action.

Budget Allocation Details

More than half of the $3.2 billion will be dedicated to modernizing the state’s fleet. Specifically, the funds will facilitate the replacement of 1,150 trucks, 1,000 transit buses, and 1,000 school buses with electric models.

An additional $800 million is earmarked for the Clean Cars 4 All program. This program assists low-income drivers in upgrading to zero- or near-zero emission vehicles and provides further rebates for clean vehicle purchases.

Infrastructure and Manufacturing Support

The proposal also includes $500 million for infrastructure development, likely focusing on expanding the availability of EV charging stations. Furthermore, $250 million will be distributed as manufacturing grants.

Call to Automakers

Governor Newsom directly addressed Hyundai, referencing their recent $7.4 billion investment in U.S. EV manufacturing through 2025. He encouraged the automaker to consider California as a key location for these investments.

Addressing Energy Security Concerns

Newsom highlighted the importance of reducing reliance on foreign energy sources. He cited recent cybersecurity threats, such as the attack on the Colonial Pipeline, as a catalyst for prioritizing domestic energy production and security.

Part of a Larger Recovery Plan

This $3.2 billion investment is a component of Newsom’s proposed $100 billion economic recovery package, “California Roars Back.” If approved by the state legislature, this would represent the largest recovery plan in California’s history.

Additional Energy Investments

The broader recovery package also includes approximately $1 billion for improvements to the state’s electric grid. This investment will support energy storage, green hydrogen, and offshore wind development projects.

California’s 2035 Goal

Last September, Newsom signed an executive order aiming to phase out the sale of new internal combustion engine passenger vehicles in California by 2035. Transportation currently accounts for over half of the state’s total carbon emissions.

This initiative underscores California’s commitment to a sustainable transportation future.