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The fight over hydrogen-fueled cars
Under a state mandate, California must phase out fossil fuels and gasoline-powered cars by 2035. About 25% of new cars sold in the state this year are powered by batteries and Californians own about 760,000 battery-powered vehicles. And there’s the need for more EV charging stations and other programs, particularly to broaden access for less affluent Californians. But there are only about 12,000 hydrogen-powered cars and demand dropped last year by 20%.
So why is so much state money going into hydrogen vehicles? And why is the industry pushing for even more?
Since 2013, the state’s Clean Transportation Program — which uses California driver fees to invest in alternative fuels and clean vehicle technology — has earmarked 20% of funds for hydrogen (and the state so far has spent $202 million for hydrogen fueling stations). A lobbying group for hydrogen supporters and suppliers — including Chevron, Shell and Toyota — is seeking a 30% share, totaling $300 million over the next decade.
This exceeds what Democratic Assemblymember Eloise Gómez Reyesfrom San Bernardino and Sen. Lena Gonzalez from Long Beach seek for the next few years. Their Assembly Bill 241 would require only 10% of the program’s funds to go toward hydrogen fueling stations until 2030 (about $10 million a year).
As electric cars become more popular, oil and gas companies regard hydrogen as a way to stay in the industry (hydrogen cars emit no emissions, but they use fossil fuel-derived hydrogen gas to run their motors). Lobbying groups, which include Chevron and Shell, are advocating for more money, but environmentalists are pushing back, even as Gov. Newsom last week announced a new push to expand the hydrogen market.
California legislators are divided about how valuable hydrogen is, but if they can’t reach an agreement on the spending plan, the program will expire next year. For Gonzalez, she doesn’t want to allocate more than $10 million a year given the technology’s low adoption rate.
- Gonzalez: “It’s a waste of money. They say they’re hydrogen businesses, but they’re really fossil-fuel-industry businesses.”