H2 blogs

   The US government funds research, development, and deployment of products and technologies that will benefit our nation and also the future of global economic and public health. Federal and State governments invest in research and development (R&D), technology validation, and support for local-level deployment of Hydrogen. 

The U.S. Department of Energy's Fuel Cell Technology Office leads a multi-year R&D program with the goal of reducing the cost of hydrogen production, as well as the expenses associated with hydrogen delivery. Additionally, they have initiated a project to explore the potential of hydrogen at scale. The Department of Transportation and the U.S. EPA invest in pilot programs for fuel cell buses and trucks.

In the State of California, funding for all alternative fuels, including hydrogen, is provided through the Alternative and Renewable Fuel and Vehicle Technology Program, commonly known as "AB8." This program is financed through a small surcharge on vehicle and boat registrations,smog check fees, and license plate fees. The Energy Commission allocates approximately $100 million annually through a competitive grant process. In 2013, the State Legislature dedicated up to $20 million per year specifically for retail hydrogen stations until 2023.

Today, the California Energy Commission (CEC) approved a plan to invest up to $115 million to expand the number of fueling stations that support hydrogen fuel cell electric vehicles (FCEVs) across the state. This funding represents a significant increase and brings California closer to its goal of deploying 200 public hydrogen fueling stations. 

The plan aligns with Governor Gavin Newsom's executive order to phase out the sale of new gasoline-powered passenger vehicles by 2035 and aims to establish essential infrastructure to meet the fueling needs of the growing number of zero-emission vehicles (ZEVs) expected in the next decade. While battery electric vehicles (BEVs) are currently more common, over 8,000 FCEVs have already been leased or sold in the state.

Under this plan, the goal is to construct up to 111 new hydrogen fueling stations by 2027, with many designed for multi-use by passenger vehicles, trucks, and buses. The total project funding is subject to annual approval from both the state budget and the CEC's allocations.

The AB8 program showcases the state's commitment to building hydrogen stations, enabling automakers to plan for the production of FCEVs. Through the DRIVE competitive grant process, businesses can receive 70-85% of the capital and construction costs for hydrogen stations, minimizing their financial risk. Additionally, the program covers station operation and maintenance costs for the first three years, ensuring their continued operation until there are enough vehicles to establish a robust business case.

Federal funding is also directed towards hydrogen stations for fuel cell buses, and local air districts have committed funding for heavy-duty hydrogen stations. The California Fuel Cell Partnership (CaFCP) is actively exploring additional funding sources for these stations.

To encourage the adoption of fuel cell vehicles, the California Air Resources Board offers a $5,000 rebate for California residents who purchase or lease an FCEV. Furthermore, to promote ZEV deployment among all populations, an additional $2,000 rebate is provided to consumers with household incomes equal to or less than 300% of the federal poverty level.

Plentiful incentives exist for Hydrogen Suppliers and our users.  At All Carbon Solutions, we plan to fast track to hit those targets and fuel the future.