The California Energy Commission’s (CEC) Clean Transportation Program provides funding to support in-state manufacturing of zero-emission vehicles (ZEVs) and ZEV-related supply chains. The CEC is committed to California’s goals of zero-emission transportation while growing high quality manufacturing jobs in the state. To meet these goals, grant funding opportunities are active and under development to:

  • Increase in-state manufacturing of ZEVs, ZEV components, and ZEV infrastructure;
  • Attract new and expand existing ZEV-related manufacturing in California;
  • Increase the number and quality of direct and indirect ZEV-related manufacturing jobs in California;
  • Bring positive economic impacts to the state by attracting private investments in manufacturing capacity; and
  • Contribute to California’s goals of zero-emission transportation.
  • CEC Funding Opportunities
    • In collaboration with the CEC, CalSTART is implementing  a $22.5 million grant opportunity called PowerForward, that will fund ZEV battery manufacturing projects. This solicitation is expected to be released in early 2024.
    • The CEC’s Empower Innovation Network platform provides users with a searchable directory of public and private funding opportunities.
  • Non-CEC Funding Opportunities:
    • Governor’s Office of Business and Economic Development (GO-Biz): The California Business Investment Guide (PDF) provides businesses with a guide to help identify relevant state funding resources for recovery and success in California.
    • California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA): The Sales and Use Tax Exclusion (STE) Program provides sales and use tax exclusion to manufacturers that promote alternative energy and advanced transportation.
    • California Department of Tax and Fee Administration (CDTFA): The Manufacturing and R&D Partial Sales & Use Tax Exemption provides partial exemption from sales and use tax on the purchase or lease of qualified machinery and equipment primarily used in manufacturing, research and development, and electric power generation or production, storage or distribution. 

The California Budget Act of 2021 includes a multi-year investment of $3.9 billion to support the transition to ZEVs, support in-state manufacturing, and support job creation. A total of $1.165 billion is administered by the CEC. Fiscal year (FY) 2021-2022 includes $125 million to increase in-state manufacturing of ZEVs, ZEV components and batteries, and ZEV charging or refueling equipment. An additional $125 million for the same activity was included in the California Budget Act of 2022 for FY 2022–2023.

The CEC intends to administer these one-time manufacturing funds under the Clean Transportation Program. Established in 2007 by Assembly Bill 118 (Nunez, Chapter 750, Statutes of 2007), the CEC’s Clean Transportation Program provides funds for projects to develop and deploy innovative technologies that transform California’s fuel and vehicle types to help attain the state’s climate change policies.


Fuels and Transportation Division


Clean Transportation Program