Annual Hydrogen Evaluation
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Page last updated December 27, 2024
Background
The Clean Transportation Program was established by Assembly Bill (AB) 118 (2007) and was re-authorized by AB 8 (2013) and AB 126 (2023). AB 126 supports the development of hydrogen refueling infrastructure in California, providing at least $15 million annually through 2030 for hydrogen fueling stations. The California Energy Commission distributes these funds through competitive grants. As mandated by AB 126, the California Air Resources Board (CARB) offers annual evaluations for the deployment of light-duty fuel cell electric vehicles and identifies needs for hydrogen station network expansion. Reports have been published annually since 2014.
What’s New in 2024?
California’s zero-emission vehicle (ZEV) policies and programs continue to be pivotal strategies in the global effort to combat climate change and California also continues to directly invest in the ZEV transition with budget commitments of up to $10 billion over seven years to advance ZEVs and infrastructure development. Since CARB published the 2023 Annual Evaluation, there have been many changes in California’s hydrogen fueling network. Progress has proven slow and has not kept pace with prior near-term projections. Slow network development, with commensurate delays in actual and planned fuel cell electric vehicle (FCEV) sales, has consistently been a challenge for stations in California and the past year has proven more difficult than other recent years. Some long-standing challenges have persisted like slow permitting timelines, the loss of planned station locations, and equipment reliability challenges. Additionally, more recent challenges have been amplified that affect station network development, and impact the customer experience, including a sustained stoppage in delivery of hydrogen to Southern California stations, persistent supply chain issues, high rates of inflation, high costs of the energy needed to produce hydrogen, high retail hydrogen prices, and market dynamics in CARB’s Low Carbon Fuel Standard program.
This main report includes seven major findings from the analysis that convey important trends that inform state planning and investments for light-duty vehicle hydrogen stations. Since the 2023 Annual Evaluation, four new stations have been added to the light-duty hydrogen refueling network. According to station developer information provided to the Energy Commission, the network is projected to reach 129 stations by 2030, a longer timeline compared to last year’s analysis. The 2024 annual auto manufacturer survey responses were historically low and reflect much slower growth in sales, with on-road FCEV populations projected to grow only at the pace seen in the past few years. As a result, projected total statewide network capacity will outpace hydrogen fueling demand through the end of the decade. With very few changes in last year’s projection of stations, there has been minor variation in the location of stations and the network’s coverage specifically in and near disadvantaged communities. However, the priority regions of the state identified in this year's analysis lack convenient access to hydrogen infrastructure. A gap remains in achieving Executive Order (EO) B-48-18’s goal of 200 hydrogen fueling stations by 2025.
Further, the report provides recommendations for the Energy Commission. The report recommends using the hydrogen infrastructure support funds to improve station reliability, enhance stakeholder engagement, and leverage Alliance for Renewable Clean Hydrogen Energy Systems, known as ARCHES, funding for light-duty vehicles along with other energy infrastructure.