For Immediate Release

Thursday, April 3, 2025

Contact: Elisa Rivera

Elisa.Rivera@sen.ca.gov (559) 264-3070

Senator Anna M. Caballero Introduces SB 419 – The Hydrogen Fuel Equity Act to End Double Taxation on Hydrogen Vehicles and Promote Clean Air

SACRAMENTO, CA – Senator Anna M. Caballero (D-Merced) has introduced SB 419 – The Hydrogen Fuel Equity Act, a measure to streamline hydrogen taxation and make clean energy more accessible for Californians.

Currently, hydrogen-powered vehicle owners in California face an unfair double taxation system, paying both a Sales and Use Tax (SUT) at the pump and a $100 annual road improvement fee at registration. SB 419 seeks to correct this imbalance by aligning hydrogen taxation with local utility tax, to ensure a more equitable, clear and streamlined system without altering the existing registration fee.

“This bill will create tax parity for Zero Emissions Vehicles to encourage alternative vehicle fuel options, specifically hydrogen fuel cell vehicles. This bill will encourage the development of new hydrogen fuel stations, more hydrogen powered vehicles, and more options for consumers.” - said Senator Anna M. Caballero (D-Merced) “SB 419 will reinforce California’s climate change goals to reduce carbon emissions in the transportations sector. The bill will help encourage the production, consumption and proliferation of hydrogen fuel markets across the state.”

For decades, hydrogen has been taxed as a commodity, used in everything from agricultural fertilizers to chemical refining. However, with hydrogen now emerging as a key fuel source in California’s clean energy transition, existing taxation models are outdated and create an unnecessary financial burden for consumers. SB 419 will support clean energy adoption, consumer affordability and transportation infrastructure funding, all while helping California achieve its ambitious climate goals.

A sunset clause in 2031 would reassess the tax's effectiveness and its potential permanence.

For interviews or inquiries, please contact: Elisa Rivera at 559-264-3070

Senator Anna M. Caballero proudly represents California's 14th Senate District, leading efforts to advance clean energy, improve healthcare access, expand affordable housing and create opportunities for working families across Merced, Fresno, and Madera Counties.

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