Governor Schwarzenegger Highlights $1.3 Billion in Transportation Funding at California Fuel Cell Partnership

Governor Arnold Schwarzenegger today visited the California Fuel Cell Partnership to discuss his budget for transportation and funding to support the expansion of the hydrogen highway.

"My budget reflects California’s dedication to transportation by fully funding Proposition 42 for the first time ever and putting an additional $1.3 billion into transportation projects across our state. This will allow us to build bridges, expand highways, create new carpool lanes, and terminate gridlock and speed up the commute for Californians," said Governor Schwarzenegger. "Dealing with this problem is important not only for today, but for our future. We are renewing our commitment to make our transportation network once again the envy of the world."

Governor Schwarzenegger is the first governor to fully fund Proposition 42, putting $1.3 billion in taxes paid at the gas pump directly back into transportation construction. This investment in California's transportation infrastructure will not only get Californians to their destinations more quickly and safely, but it will also stimulate the economy, create jobs, lessen traffic, more efficiently move goods throughout the state and improve air quality. This funding is critical for the future as it is predicted the state will see its population grow by 10 million in the coming years.

The $1.3 billion would be distributed as prescribed by Proposition 42, as follows:

$678 million would go to the Transportation Congestion Relief Program (TCRP)
$254 million to the State Highway Account (SHA) for State Transportation Improvement Program (STIP) projects
$254 million to cities and counties for deferred maintenance of local roads ($127 million to cities, $127 million to counties)
$127 million to the Public Transportation Account, with half ($63.5 million) of those funds available for STIP projects and half ($63.5 million) for State Transit Assistance (STA)

Proposition 42, passed by the voters in 2002, requires that state sales and use taxes on the sale of motor vehicle fuel be used for public transportation, city and county street and road repairs and improvements, and state highway improvements. Proposition 42 was partially suspended in the 2003-04 budget and fully suspended in the 2004-05 budget.

The Governor today also underscored the importance of efforts to develop technology to ensure California’s air quality is protected as the state continues to grow.

"My budget will spend an additional $6.5 million to build hydrogen fueling stations and use hydrogen-powered cars and shuttle buses for more research and testing," said Governor Schwarzenegger. "By working together we can build the infrastructure our state needs to ease traffic congestion and create the hydrogen highway to make sure California’s future is cleaner."

Governor Schwarzenegger signed budget trailer bill SB 76, which provides $6.5 million to support the first year implementation of the California Hydrogen Highway Network. It also establishes specifications for hydrogen fuels, and expands the use of Public Interest Energy Research Program funds to include transportation-related research projects.

In addition, the Governor’s budget allocated $88.5 million into the Carl Moyer Program to reduce emissions by getting old, polluting vehicles off California’s roads.