California Lawmakers Weigh Zero-Emission Transportation Funding Priorities

September 2, 2026

Authored by Michael Dorgan

As the federal policy and funding landscape for zero-emission transportation continues to evolve, state governments are playing an increasingly important role in determining how projects and technologies move forward. For CTE and its members, that means paying closer attention to state-level funding decisions, regulatory programs, and other policies that can directly affect zero-emission vehicle and infrastructure deployments. CTE is dedicating significantly more resources tracking, analyzing, and supporting policies at the state level that are shaping the future of zero-emission transportation.

California has long been a major source of funding and policy support for zero-emission technologies. In early August, CTE Policy Manager Michael Dorgan, along with Senior Hydrogen Fellow Jaimie Levin and Policy Intern Casper Graham traveled to the state capital to meet with lawmakers and discuss the outlook for relevant funding opportunities in California. Joined by Steve Wallauch of Platinum Advisors, the CTE team met with lawmakers in both the State Senate and Assembly to share the importance of continued support funding for Transit and Intercity Rail Capital Program (TIRCP), Low Carbon Transit Operations Program (LCTOP), and other zero-emission priorities. The team reinforced the need for continued California Air Resources Board funding for hydrogen vehicle demonstration and deployments across vehicle sectors, including in transit, truck, and port operations.

While our message was well received, deliberations between the legislative chambers and the governor’s office continue regarding how funds will be allocated within broader funding categories. A drastically restricted state budget and less-than-anticipated incomes from the state’s Cap and Invest program present a challenging set of circumstances for lawmakers. Several key zero-emission transit initiatives, including the TIRCP and LCTOP, have been placed into Tier C of the State Expenditure Plan, meaning their funding is less certain and may depend on available revenues and final budget decisions. Competing statewide demands, such as wildfire relief and affordability initiatives, are all contending for a smaller pot of funding. CTE will continue to advocate for sustained investment in programs that support zero-emission transportation and help ensure that proven projects and technologies can continue moving forward.  

If you're a CTE Member and would like to discuss any policy-related topics, at the state or federal level, please reach out to Michael Dorgan, Policy Manager (dorgan@cte.tv).