California’s 2021 Budget Proposal Includes $1.5B for EVs

California governor, Gavin Newsom announced that a third of the states $4.5 billion 2021 budget for economic stimulus will go towards subsidies to help commercial and private buyers purchase electric or hydrogen vehicles. The $1.5 billion will also go towards the construction and upkeep of charging and fueling infrastructure. In addition, the new EV budget will allow EV charging stations at all state-owned facilities. 

Although consumers will still be able to purchase used ICE Cars in the state, California announced in September 2020, the ban of sales of new ICE vehicles by 2035. According to CNBC: “According to AutoForecast Solutions Vice President of Global Vehicle Forecasting, Sam Fiorani, in the next year alone, 11 new North American-built electric vehicles are expected to enter the domestic market, along with an updated Tesla Model S. Imported EVs are also poised to sell stateside, including in California. These include the Nissan Ariya, Volkswagen ID.4, and others.”

It is no secret that Newsom views pollution and climate change as an emergency that requires immediate action. The governor previously said the state should expand “interest-free payment options for larger businesses particularly affected by significant restrictions on operations due to Covid-19.” He also suggested $430 million in incentives and grants for businesses that “locate in California to stay, grow and create quality full-time jobs in the state” and to “support job creation and investments in infrastructure.”

A full version of the governor’s new budget proposal is expected to be released on Friday.

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