A California agency will use a $1.9 billion zero-emissions vehicle infrastructure plan to help fund hydrogen trucks, school buses and public transit but not hydrogen-powered cars.

Approved Feb. 14, the California Energy Commission's four-year spending plan allocates $1.14 billion to medium- and heavy-duty vehicle infrastructure, including hydrogen fueling stations and electric vehicle chargers. More than $600 million would support light-duty EV infrastructure and at-home charging, according to the lead commissioner's report.

But the commission did not promise any new funding for hydrogen fueling stations for light-duty vehicles, proposing only to "potentially build" new stations with funds left over from previous fiscal years. Depending on market demand, the funds may also support the maintenance of existing stations or new medium- and heavy-duty vehicle infrastructure.

The proposal comes as EV adoption speeds ahead and California's hydrogen fueling infrastructure for passenger vehicles grows smaller. In June 2023, a Shell PLC subsidiary canceled a $41 million agreement with the commission that was expected to lead to 50 new light-duty hydrogen fueling stations in the state. Earlier this month, the company permanently closed its seven existing stations, according to a statement posted on the Hydrogen Fuel Cell Partnership's hydrogen station tracker website.

Shell said the closures were "due to hydrogen supply complications and other external market factors." The company will continue to operate stations for heavy-duty vehicles.

The announcement followed a string of station closures, bringing the total number of retail stations in California down to 61. In October 2023, California's largest hydrogen provider True Zero Inc announced the closure of 10 stations. Other operators shuttered stations in November and December 2023, all citing supply challenges.

The California Energy Commission said it is "committed to providing a sufficient hydrogen fueling infrastructure" for fuel cell electric vehicles and will continue to evaluate the light-duty market.

"However, developers have been cautious in the face of inflationary pressures and market uncertainties," the commission added, including low prices for the carbon credits generated by clean fuel suppliers. As a result, the commission said, its recent solicitation for hydrogen fueling stations was undersubscribed.

The EV funding approved on Feb. 14 is expected to help deploy 40,000 new chargers statewide, according to a news release, which said California currently has 94,000 public and private chargers installed.

The funds will be made available to businesses, nonprofits, tribes and public agencies through competitive grants, the release said.

Tom DiChristopher contributed to this story.