$7B Energy Program Set to Revolutionize California, Enhancing Los Angeles’ Environment and Economy

As part of a $7 billion federal program, seven regional Clean Hydrogen Hubs will be launched across the nation, including California. Mayor Karen Bass commended the initiative, emphasizing its potential to foster sustainability, climate resiliency, and create hundreds of thousands of jobs.

Out of the $7 billion, California will receive up to $1.2 billion to build or expand hydrogen projects. These projects will power public transportation, heavy-duty trucks, and operations at the San Pedro Bay, according to Gov. Gavin Newsom’s office.

During a news conference at the Port of Los Angeles, Bass announced that a significant amount of funding would be allocated to build a greener Los Angeles. This funding will facilitate the transition of the port to zero-emission hydrogen-fueled trucks and cargo handling equipment. It will also support the conversion of a natural gas plant into a hydrogen plant by the Department of Water and Power.

“Today is a special day for California and for Los Angeles,” Bass said. “The money we are receiving will help seed a robust green hydrogen market to assist in the pursuit of zero-emission operations. We know that we must protect and improve the health of communities directly impacted by port-related emissions and work towards a greener future while also ensuring that we create good paying jobs.”

Gene Seroka, executive director of the Port of Los Angeles, expressed his support for the funding, stating that it will enable the purchase of hydrogen fuel cell-powered equipment throughout the port complex.

“Together, we have been working on this for years, and I’m pleased to see this day. Working with the Mayors and ports of L.A. and Long Beach, this funding gives us a real opportunity to reach our goals to decarbonize the San Pedro Bay and clean the air of the surrounding communities,” said Councilman Tim McOsker, who represents the 15th District, encompassing San Pedro, Wilmington, Watts, Harbor City, and Harbor Gateway.

In Long Beach, city and port officials also expressed their enthusiasm for the investment, echoing similar sentiments from officials in Los Angeles.

“By establishing a green hydrogen hub, we will now have the capacity to accelerate the production of renewable hydrogen that will clean our air, generate high-quality green jobs for our local communities, and help power California into the future,” said Long Beach Mayor Rex Richardson.

Jeremy Harris, president and CEO of the Long Beach Area Chamber of Commerce, called this funding a “landmark funding” that will reduce emissions and boost economic growth in Southern California.

The U.S. Department of Energy announced the launch of its Regional Clean Hydrogen Hubs, also known as H2Hubs, to accelerate the commercial-scale deployment of low-cost, clean hydrogen. Clean hydrogen is an energy source that can be produced with zero or near-zero carbon emissions.

“Unlocking the full potential of hydrogen, a versatile fuel that can be made from almost any energy resource in virtually every part of the country, is crucial to achieving President (Joe) Biden’s goal of American industry powered by American clean energy, ensuring less volatility and more affordable energy options for American families and businesses,” said U.S. Secretary of Energy Jennifer M. Granholm.

Hydrogen projects funded through this initiative are expected to lead to a reduction of up to 2 million metric tons of carbon emissions annually. Additionally, the hub is estimated to create 220,000 new jobs, including 130,000 in construction and 90,000 permanent jobs.

Approximately 40% of the benefits from these projects will be directed toward disadvantaged communities.

“Today, we are moving from concept to reality — advancing clean, renewable hydrogen in California, which is essential to meeting our climate goals,” said Gov. Newsom. “We would not be here without President Biden’s leadership and his signature Bipartisan Infrastructure Law, which has served as a catalyst for the nation in addressing climate change. California’s Hydrogen Hub will cut pollution, power our clean energy economy, and create hundreds of thousands of good-paying jobs.”

The federal funding was awarded to California after the state submitted an application through its Alliance for Renewable Clean Hydrogen Energy Systems, a public-private partnership dedicated to building the framework for California’s renewable, clean hydrogen hub.

In addition to California, the Appalachian, Gulf Coast (Texas), Heartland (Minnesota, North Dakota, and South Dakota), Mid-Atlantic (Pennsylvania, Delaware, and New Jersey), Midwest (Illinois, Indiana, and Michigan), and the Pacific Northwest (Washington, Oregon, and Montana) regions were also designated as H2Hubs and will receive federal funding for their hydrogen projects.

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