Purpose of Solicitation
This is a competitive grant solicitation. The CEC’s Clean Transportation Program announces the availability of up to $60 million in grant funds for projects that will increase in-state manufacturing of zero-emission vehicles (ZEV), ZEV components and batteries, and ZEV charging or refueling equipment.
Background
The California Budget Act of 2021 includes $125 million in fiscal year 2021-2022, to be administered by the CEC, to increase in-state manufacturing of ZEVs, ZEV components and batteries, and ZEV charging or refueling equipment.[1] An additional $125 million is anticipated for fiscal year 2022-2023, pending appropriation in that year’s budget. As described in the Budget Act of 2021, the selection criteria for manufacturing grants should include the following:
- Likelihood that manufacturing activities would not have otherwise occurred in-state either in terms of the entity’s presence in California or at the scale that may not otherwise be achieved without the manufacturing grant.
- Number and quality of direct and indirect jobs created.
- Economic impact to the state.
- Ability of the project to contribute to California’s goals of zero-emission transportation.
This solicitation utilizes the processes established under the Clean Transportation Program.
Assembly Bill (AB) 118 (Núñez, Chapter 750, Statutes of 2007), created the Clean Transportation Program. The statute authorizes the CEC to develop and deploy alternative and renewable fuels and advanced transportation technologies to help attain the state’s climate change policies. AB 8 (Perea, Chapter 401, Statutes of 2013) re-authorized the Clean Transportation Program through January 1, 2024. The Clean Transportation Program has an annual budget of approximately $100 million and provides financial support for projects that:
- Reduce California’s use and dependence on petroleum transportation fuels and increase the use of alternative and renewable fuels and advanced vehicle technologies.
- Produce sustainable alternative and renewable low-carbon fuels in California.
- Expand alternative fueling infrastructure and fueling stations.
- Improve the efficiency, performance, and market viability of alternative light-, medium-, and heavy-duty vehicle technologies.
- Retrofit medium- and heavy-duty on-road and non-road vehicle fleets to alternative technologies or fuel use.
- Expand the alternative fueling infrastructure available to existing fleets, public transit, and transportation corridors.
- Establish workforce training programs and conduct public outreach on the benefits of alternative transportation fuels and vehicle technologies.
This solicitation supports the goals of Executive Order (EO) B-48-18 and EO N-79-20, pertaining to ZEVs. EO B-48-18 is designed to accelerate the market for ZEVs by establishing a target of 5 million ZEVs in California by 2030 and by significantly expanding ZEV infrastructure. EO-79-20 establishes a target of 100 percent of in-state sales of new passenger cars and trucks be ZEVs by 2035; 100 percent of medium- and heavy-duty vehicles in the State shall be ZEVs by 2045 for all operations where feasible, and by 2035 for drayage trucks; and transition to 100 percent zero-emission off-road vehicles and equipment by 2035 where feasible.
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