The California Energy Commission’s Clean Transportation Program invests in zero-emission vehicle infrastructure throughout the state of California, including electric vehicle charging stations and hydrogen refueling infrastructure. In addition to investments in zero-emission vehicle infrastructure, the Clean Transportation Program also prioritizes jobs, economic stimulus, and equity.
The Clean Transportation Program currently receives approximately $100 million in annual funding through fees included in certain vehicle registration and smog charges, in addition to other revenue sources. These fees were first authorized by Assembly Bill (AB) 118 (Núñez, Chapter 750, Statutes of 2007), were reauthorized by AB 8 (Perea, Chapter 401, Statutes of 2013), and most recently were reauthorized by AB 126 (Reyes, Chapter 319, Statutes of 2023). AB 126 authorized these fees to July 1, 2035. These fees are codified at Sections 9250.1 and 9261.1 of the Vehicle Code and Section 44060.5 of the Health and Safety Code and are referred to as the “AB 126 fees” throughout this report.
The AB 126 fees are vital to California’s zero-emission vehicle infrastructure efforts because, unlike General Fund or Cap-and-Invest revenue, they provide a dedicated, stable, and predictable funding stream for the Clean Transportation Program. In the absence of the AB 126 fees, the Clean Transportation Program would have to be significantly curtailed, leaving private investors in zero-emission vehicle infrastructure with less certainty of long-term state support.
While AB 126 reauthorized the AB 126 fees, the law also directed the Commission to examine alternative funding methodologies, fee structures, and the economic equity of fee funding for zero-emission vehicle infrastructure. This report presents options for funding zero-emission vehicle infrastructure, including the expected economic equity impact of each option.
